Bakery prices to rise by up to 20% from Saturday

Prices of bakery products in Bangladesh are set to increase by up to 20 percent from Saturday (September 12), as manufacturers cite rising raw material costs and ongoing gas and electricity shortages.

The Bangladesh Bread, Biscuit and Confectionery Manufacturers Association has decided to adjust the prices of bakery products from Saturday.

In some cases, however, manufacturers may keep prices unchanged while reducing the weight of products.

Association President Mohammad Jalal Uddin said the prices of key raw materials have risen sharply, making it increasingly difficult for bakeries to maintain production at existing prices.

He said flour that previously cost Tk 25–30 per kg is now around Tk 42, while the price of a 50-kg sack of flour has increased from about Tk 3,000 to Tk 5,600. The price of a drum of edible oil has also risen from Tk 25,000 to Tk 36,000, he added.

Besides higher raw material costs, bakery owners are struggling with gas and electricity shortages, which have disrupted production and increased operating expenses.

According to the association, production costs have risen by 20–30 percent, while inadequate gas and electricity supplies have reduced production by around 10–15 percent.

Bangladesh has roughly 7,000 small bakeries, including more than 700 in Dhaka, according to the association.

Jalal Uddin said some bakeries have reduced production rather than shut down. He warned that the sector could face serious difficulties within six months if the ongoing crisis continues.

The price adjustment is expected to affect commonly consumed products such as bread, biscuits and other bakery items.