SIMBISA Brands subsidiary, Bakers Inn Bakeries, has reduced to $14 the price of a loaf of bread from $15,75 in response to a Government subsidy in the supply of wheat.
Chief executive officer, Mr Ngoni Mazango, said they decided to cut the price to also benefit the consumers. Despite being a basic commodity, the price of bread had virtually gone beyond the reach of many.
“The Government has supplied millers with subsidised wheat, which by and large reduces the price of flour. In response to this development, Bakers’ Inn Bakeries has decided to extend the benefit to the consumer despite the escalating costs of other inputs like power, diesel, local and imported raw materials,” said Mr Mazango.
“Bakers’ Inn bread as from Tuesday 29 October 2019 reduced its wholesale price from $14 to $13. The recommended retail price is between $14 and $14.50.
“Consumers were having to pay as high as high as $15,75 in the last weeks. This price will hold for as long as Bakers Inn Bakeries have the subsidised flour,” he said.
The erosion of incomes in the face of inflation has severely crippled consumer purchasing power with businesses also crying foul over falling aggregate demand.
Bread is among basic commodities whose price has been continuously increasing following shifting exchange rate patterns. Bakers Inn is one of the largest producers and competes for the market with mainly Proton, Lobel’s, Ocean and several small-scale bakers. The Chronicle