Bread prices sky rocket [Archives:2008/1135/Local News]
By: Saddam Al-Ashmori
SANA'A, March 3 ) Bread prices have jumped to YR 20 per loaf instead of YR 10, thereby constituting a 100-percent increase. As a result, Yemenis have strongly denounced the sudden and unexpected increase in bread prices, particularly as bread is one of the basic commodities in their everyday life.
“We're shocked at the sudden rise in bread prices, but we're obliged to buy it at such a high price because no one can dispense with bread, a necessity at every meal,” citizen Abdullah Qutaina observed, “Bread prices have doubled while loaf weight varies from one bakery to another.
“Unfortunately, bakeries don't produce bread according to a standard weight,” he added, urging concerned government authorities to put a stop to the skyrocketing prices of basic foodstuffs, particularly, wheat, flour, cooking oil, milk, rice and sugar.
“From today onward, we must fast every day or reduce our three meals a day to one. Instead of buying 30 pieces of French bread for breakfast at YR 300, we now pay YR 600 for the same quantity and it's the same for each meal, lamented widow Mariam Al-Tawili. “Because my late husband's pension is only YR 30,000, I don't know how it can cover our daily expenses throughout the month.” She went on to say that, “For us, daily expenses have become unaffordable. We don't know if there are possible solutions to this situation, but we hope the bread prices stop here.”
According to bakery owner Mohammed Al-Raimi, production costs have increased drastically due to the soaring prices of breadmaking ingredients. He notes that this week, 50 kilograms of flour is selling for YR 7,700, adding that high rents, the increased cost of plastic bags and workforce compensation is hindering bakeries from making good profits; thus, they sometimes take a loss. However, Al-Raimi stressed that his bakery is producing loaves at a reasonable weight in case the government takes any action against bakeries, which would lead to their owners shutting them down.
Yemen's Ministry of Trade and Industry previously maintained that international factors are behind the soaring prices of wheat and flour due to increased transportation, shipment and storage costs. It announced that the rising prices of basic foodstuffs is an international phenomenon due to growing demand and falling market supplies, pointing out that wheat- and flour-producing nations have experienced abnormal climate changes that damaged this year's agricultural crops.
The ministry further denies that it has set the bread price at YR 20 per loaf. Abduraqeeb Al-Samawi, manager of the Sana'a Trade and Industry Office, says the ministry agreed with bakery owners to set the bread price at YR 180 per kg. “However, this agreement did not set loaf prices at YR 20,” he stated, pointing out that the ministry exerted much effort to reach this agreement with the bakeries. According to him, the agreement was signed after week-long negotiations between both sides. He stressed that citizens must cooperate with the government by purchasing bread by weight. In return, the government is attempting to follow up with bakers in order to make them adhere to the new agreement, as some already have violated it regarding the new bread weights.
Ministry officials listened to bakers' viewpoints and remarks concerning problems they face in implementing the agreement, including instability in wheat and flour price increases and lack of experience in selling bread by weight.
Trade and Industry Ministry officials have urged the governors of all Yemeni governorates to live up to their responsibility to oblige bakers to sell bread by weight, applying the ministry's pricing structure. At a Monday meeting chaired by Deputy Minister of Trade and Industry Ali Ahmad Al-Sayyaghi, ministry officials discussed action it and its governorate branches have taken so far with the intention of preventing traders from varying wheat and flour prices. Attendees vowed to be tough and end leniency toward those bakers violating the fixed pricing for selling bread, which is YR 180 per kilogram.
Additionally, the meeting participants decided to launch field campaigns and oversight visits to determine bakeries' level of commitment to the fixed bread pricing. Such action will be carried out in coordination with local councilors and governors.
Commenting to various media outlets, many citizens have said the 100-percent hike in bread prices is “a death penalty” handed down against them by the government and merchants, as economic situations are worsening and individual income remains low.
Further, they have inquired about promises President Ali Abdullah Saleh made in his September 2006 electoral platform.
According to Yemen's Saba News Agency, Trade and Industry Minister Yahya Al-Mutawakil met with bakers last month to discuss how to implement the decision to sell bread by weight, suggesting posting the fixed price structure on bakery walls so customers can see it.
Al-Mutawakil affirmed the necessity of bakeries' commitment to sell bread by weight and abide by the affixed bread pricing structure, adding that his ministry has authorized governors to fix bread prices.
He clarified that while touring several Sana'a bakeries, he discovered violations of the agreement to sell bread by weight. Consequently, he stressed the necessity of coordination between ministry offices and concerned private sector bodies in order to reduce citizens' sufferings resulting from the price hikes.
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