BASSETERRE, St. Kitts – FOLLOWING a series of meetings, bakers have been given the green light by the government to increase the price of one of their bread products which was being sold for $1.50.
Minister of Trade Dr. Timothy Harris told this publication that the meetings were held among bakers and representatives of the Ministry of Trade and Ministry of Finance.
During these meetings, he explained, a number of proposals and counter proposals were made and discussions had, at the end of which a decision was made to raise the maximum limit by 33% - from $1.50 to $2.00.
“The bakers and the government, Minister of Finance and the Ministry of Trade have been meeting over a period of time to discuss a response to the increasing cost of inputs into bread. For example, flour, butter…
“The bakers proposed in the end a significant increase in bread and asked for the granting of concessions on many of the inputs. But the Ministry of Finance was of the view that the government could not continue to provide substantial subsidies to the making of bread and, as a result of that and based on the negotiations, Cabinet approved a $.50 increase in bread from $1.50 to $2 and no further concession to be extended to the bakers.”
Minister Harris elucidated that only the seven ounce bread is subject to price control and not other bread products. And to ensure that consumers receive value for money, the minister indicated that checks would be carried out by the government.
“It is important to bear in mind that the only bread under consideration is a seven-ounce bread which is currently being sold at $1.50 and that has moved to $2. There is no price control on the other bread. What the government will do in moving forward, we will get samples of bread from each of the bakeries to ensure that they meet the seven ounce criterion that has been established.”
Dr. Harris stressed that an increase of the seven-ounce bread is not mandatory but rather, optional.
“It’s optional to the extent that the price control sets the maximum price which means they couldn’t sell a seven ounces bread for more than $1.50. They could choose to sell below…but an upper limit has now been set for $2. If a baker chooses to sell the item below the stipulated maximum, that poses no difficulty for us.”
The last increase in the price of bread took place in 2008 when what use to be referred to as a “dollar bread” was increased by 20 percent - from $1.25 to $1.50.
