Accordingly, the Chairman of the Association N.K. Jayawardena stated that the price of one pound of bread would be increased by a value between Rs. 2.50 to Rs. 5.
Meanwhile, the Ministry of Finance says that the tax concession offered for a kilo of imported wheat under the 100 days program of the government, has been reduced from Rs. 10 to Rs. 4 due to the drop in global wheat price.
In addition, the increase of local paddy production has also led to the drop in concession.
The decrease of tax concession was effective from the 9th of February.
Accordingly, following the increase of tax rates over wheat imports, the Prima company has increased one kilo of wheat flour by Rs. 7.20 from today.
However, Chairman of the Bakery owners’ Association N.K. Jayawardena says that they intend to hold talks with the government with regard to maintaining a fixed rate for bread.
Meanwhile, the businessmen in the estate community have stated that the price hike of wheat flour would have a great impact on the lives of the estate people.