Cabinet met this week and said NO to a proposed increase on the price of a 16 ounce loaf of bread.
But, they can say what they want - because de-facto, in grocery stores, what should the controlled price of $1.75 has already gone up to two dollars and above.
Cabinet says it has instructed the Minister of Agriculture, Food Security and Enterprise Joe Mai to, quote, "engage with the Association of Bakers to ensure other alternatives to minimize the possibility of drastic increases in the price of a 16-ounce pack of bread."
Well, we spoke with him today at another event in Central Farm - and he said with the cost of production currently outstripping the controlled retail price - there's not much that can be done:
Hon. Jose Mai - Minister of Agriculture, Food Security and Enterprise
"The bakers submitted that they want to increase the price of bread by 75 cents wholesale and 75 cents retail. They did provide enough evidence to show that their cost of making the bread has gone up to 1.81 a pound, so they are selling at 1.75, they are selling below. So we looked at it, we analyzed it, we prepared a cabinet paper and present to cabinet. Cabinet has not said no, they are saying I think we need to do further research to further engage the bakers because bread is a daily thing. We have asked our director of controller and supplies to meet again with the bakers to look at the structure of pricing they have and to see where it is possible to minimize the increase. We are not saying that they will not get an increase, we are saying let us do it carefully. Any increase in any commodity right now will put additional suffering on our people."
Jules Vasquez
"So what should consumers do? Because a lot of them are facing an increased price and cabinet has not approved that increase in price."
Hon. Jose Mai
"That's a legal question, you cannot raise your price when the government has not approved it yet."
Jules Vasquez
"So if you go to the bakery and they are selling you above the control price?"
Hon. Jose Mai
"It is unlawful to do that."
Jules Vasquez
"In a month's time, will we be paying more for bread?"
Hon. Jose Mai
"I suspect there will be increase, not necessarily will be what the bakers are asking and I suspect there will more people coming for increases in commodities."
