Bread Price Increases to Rs 3.90

The Council of Ministers has approved an increase in the price of so-called "controlled" bread, which will rise from Rs 2.60 to Rs 3.90, following the recommendations of an inter-ministerial committee, effective Friday, April 10, at midnight.

This decision comes with a revision of the subsidies granted to bakeries. The subsidy on the 25 kg flour bag will be reduced from Rs 541.15 to Rs 432.50. Furthermore, the subsidy of Rs 0.24 per 100 g bread 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.

Here are the key points to know:

• The inter-ministerial committee recommends increasing the price of house bread from Rs 2.60 to Rs 3.90 for 100 g.
• The subsidy on the 25 kg flour bag for bakeries will be reduced from Rs 541.15 to Rs 432.50.
• The subsidy of Rs 0.24 per 100 g bread, currently provided through the Mauritius Revenue Authority, will be eliminated.
• The State Trading Corporation will continue to sell the 25 kg flour at a subsidized price of Rs 217.50, which is 66.5% of the actual cost.
• A price increase of Rs 1.30 per 100 g bread is granted to bakers to cover rising costs, ensuring the sector's viability, with no further increases expected in the short to medium term.
• Beneficiaries registered in the Social Register of Mauritius will receive a monthly assistance of Rs 121 to mitigate the impact of this increase.
• This measure represents an estimated cost of Rs 87.1 million per year, benefiting around 60,000 households.