CAA warns of imposing bread price controls amidst overpricing concerns

July 29, Colombo (LNW): The Consumer Affairs Authority (CAA) has issued a warning to bakery owners, indicating that a regulated price for bread will be introduced next week if a 450g loaf is not sold at a maximum retail price of Rs. 130.

Sanjaya Irasighe, CAA Raids and Special Investigations Director, said concessions on electricity and fuel have been provided, and these savings should be passed on to consumers by pricing bread at Rs. 130.

“Previously, the retail price of a loaf of bread was Rs. 140. Following price reductions, it should now be Rs. 130. However, some areas are selling bread at Rs. 140, which is unacceptable. The retail price should be uniform at Rs. 130,” he emphasised.

The CAA has communicated through the media that traders and bakeries must adhere to this pricing.

Inspections will be conducted this week, and if prices are not adjusted, the CAA will impose a controlled price next week.

Non-compliance will result in fines: Rs. 100,000 for small bakeries and between Rs. 500,000 and Rs. 5 million for larger establishments.

Irasighe urged bakery owners to transfer the benefits of reduced fuel and electricity costs to consumers rather than prioritising profit.

If necessary, the CAA will investigate and set a price based on production costs and a reasonable profit margin.

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