The General Bakers' Chamber in Egypt has requested a 15% increase in the price of tourist bread, also known as free-market bread. Chamber head Abdullah Gharab stated that the current price of a loaf, which is around 2 Egyptian pounds, is expected to rise to approximately 2.30 pounds. This request was made to the Minister of Supply, who is expected to respond next week.
The proposed price increase is part of a broader discussion on the prices and weights of tourist bread and fine bread. Gharab mentioned that there is a guiding decision made by the Minister regarding the prices and weights of fine bread and tourist bread. The Chamber's request aims to adjust the prices in line with market developments and production costs.
Gharab explained that the prices of tourist bread have varied, with some loaves selling for as low as 1.50 pounds and others for 2 pounds, depending on the weight and quality. He noted that the average price of a tourist loaf was around 1.50 pounds, which later increased to 2 pounds. The varying prices and weights of bread across different regions and bakeries have led to inconsistencies in the market.
The issue is not limited to prices alone, but also includes differences in weights, specifications, and quality across various bakeries. Gharab pointed out that each bakery in a specific area caters to a particular segment of customers, leading to diverse pricing and product offerings. This has resulted in a lack of standardization in the bread market.
When asked about the fair price of a tourist loaf in the current market, considering the costs of flour and production inputs, Gharab stated that the discussion revolves around re-examining prices in line with market developments. He mentioned that there has been an increase of around 4,000 pounds, but emphasized that the Chamber's request is not a decision to raise prices, but rather a submission to the Minister for consideration.
The General Bakers' Chamber's request for a price increase does not imply that they will unilaterally raise prices. Gharab stressed that the decision lies with the Minister, and the Chamber is awaiting a response to their request. The potential price increase is intended to reflect the changing market conditions and production costs.
The outcome of the Minister's decision on the proposed price increase will be known next week. If approved, the price of tourist bread is expected to rise by 15%, affecting consumers and bakeries alike. The Chamber's request highlights the ongoing efforts to balance the interests of bakers, consumers, and the broader market.
Key points
- The General Bakers' Chamber has requested a 15% increase in the price of tourist bread in Egypt, citing rising production costs and market developments.
