Household Bread Price Increases to Rs 3.90

The Cabinet has approved an increase in the price of "controlled" bread, which will rise from Rs 2.60 to Rs 3.90, based on recommendations from an inter-ministerial committee, effective Friday, April 10. The new price will take effect at midnight on Friday.

This decision includes a revision of the subsidies granted to bakeries. The subsidy on a 25 kg bag of flour will be reduced from Rs 541.15 to Rs 432.50. Additionally, the subsidy of Rs 0.24 per 100g loaf will be eliminated.

To mitigate the impact on vulnerable households, a monthly allowance of Rs 121 will be provided starting next month to beneficiaries of the Social Register of Mauritius.

Key points to note:

• The inter-ministerial committee recommends raising the price of household bread from Rs 2.60 to Rs 3.90 for 100g.

• The subsidy on the 25 kg bag of flour for bakeries will decrease from Rs 541.15 to Rs 432.50.

• The Rs 0.24 subsidy per 100g loaf, currently provided through the Mauritius Revenue Authority, will be eliminated.

• The State Trading Corporation will continue to sell the 25 kg flour bags at a subsidized price of Rs 217.50, which is 66.5% of the actual cost.

• A Rs 1.30 increase per 100g loaf is granted to bakers to cover rising costs and ensure the sector's viability, with no further increases expected in the short to medium term.

• Beneficiaries registered with the Social Register of Mauritius will receive a monthly assistance of Rs 121 to alleviate the impact of this increase.

• This measure represents an estimated annual cost of Rs 87.1 million, benefiting approximately 60,000 households.