Following the Bakers' Threat: MLC Proposes Opening the Market to New Players

The threat issued by the Bakery Owners' Association to suspend their production this Monday if the price of bread is not increased has raised concerns. Bread remains an essential product, consumed daily by all segments of society, and must remain accessible to everyone, insists Haniff Peerun, president of the Mauritius Labour Congress (MLC).

"The government already subsidizes bakers. However, bread must remain affordable for the population. The prices being requested are exorbitant, and many Mauritians will not be able to keep up," laments Haniff Peerun.

Currently, bakers are demanding an increase in the price of homemade bread from Rs 2.60 to Rs 4.78, while the government is proposing a compromise at Rs 3.50.

While acknowledging the economic realities of the sector, Haniff Peerun emphasizes the need for balance: "No one can continue to operate a business without making a profit. But a crucial question remains: what is the actual profit margin in this sector?"

According to him, any decision must be based on concrete data. "Before reviewing prices, it is essential to have a clear analysis of costs and potential losses," he asserts.

The union leader also questions the actual extent of the crisis: "If there are indeed losses, how many bakeries have already closed their doors?" This question highlights the need for an in-depth study. "This analysis is crucial to guide any decision," he adds.

Another point raised is the role of large supermarkets. "How are supermarkets able to sell bread at the price set by the government while offering free packaging?" he questions.

Beyond mere observation, Haniff Peerun proposes several avenues to prevent supply disruption. He advocates for the granting of new permits to entrepreneurs wishing to enter the bakery business to stimulate competition and ensure the continuity of production.

He also mentions increased involvement from the public sector: "Producing bread for hospitals and certain government institutions could be considered, notably through the prison service," he suggests.

For the president of the MLC, encouraging the entry of new players into the market remains a key solution. "Opening the sector can help stabilize supply and prevent shortages," he concludes.