CHENNAI: Rising prices have now hit one of the most common food items in homes, bread.
According to media reports, just a few days after milk prices went up, bread companies in Mumbai and nearby areas have increased prices by up to Rs 5 per packet. The hike comes after petrol and diesel prices have risen due to the ongoing conflict in the West Asia region.
Bread makers say the reason is simple: the overall cost of making and supplying bread has gone up. Modern Bread increased the prices of some of its products on May 16, and other major brands like Britannia and Wibs are also expected to raise prices soon.
Even a small increase matters because bread and milk are bought almost every day. Families will now end up spending more on monthly groceries.
Bakers and distributors say many expenses have gone up at the same time:
*. Petrol and diesel prices increased twice within a week
*. Transport and delivery costs became higher
*. LPG used for baking became costlier
*. Prices of salt and preservatives increased
*.Plastic packaging costs also went up because imports became expensive and the rupee weakened
India imports much of the plastic material used for bread covers. Due to the weak rupee and global tensions linked to the Iran war, packaging costs have increased further.
Recently, milk prices were also raised by Rs 2 per litre across India. Fuel prices increased by nearly 90 paise per litre today (May 19), after an earlier Rs 3 hike on May 15. CNG prices in cities like Delhi and Mumbai also went up.
Because of all these rising expenses, bread companies say they had no choice but to increase prices.
Industry experts say biscuits and other packed food items could also become costlier if fuel and packaging prices continue to rise. Bread is usually one of the first products to show the impact because it is sold daily and companies earn only small margins on it.
After Mumbai, bread prices in other cities may also go up soon.
When essentials like bread, milk and fuel become expensive together, the impact is felt immediately in every household. Breakfast costs more, school lunch expenses rise, and monthly grocery bills slowly increase.
This time, the rise is not only because of wheat prices, but also because transporting, packing and producing food has become more expensive.