20 bakeries fined for abusive price increases, controls continue

TIRANA, August 16 – The General Tax Directorate has fined 20 bread producers in Tirana and Durres for abusively increasing bread prices following wheat price rises in international markets triggered by Russia’s decision to ban grain exports for the rest of the year.
Tax officials said they fined 20 bakeries a total of 3.5 million lek (35,000 dollars) for abusively increasing prices by 10 lek (10 cents) and seized 10 tons of unbilled flour during controls carried out in Tirana and Durres over the weekend.
Tax inspectors say they will continue controls in all bakeries and have even made available a toll-free number, 0800 14 14, for customers to denounce abusive cases.
Meanwhile, representative of the Producers’ Association have justified price increases in some bakeries with the situation in international markets.
One ton of flour increased up to 59,000 lek (590 dollars) last weekend, up from 42,000 lek one week ago, following news of the ban of exports by Russia, the world’ fourth biggest wheat producer.
However, local media report some bakeries have already cut down the weight of the standard 1 kg loaf which used to cost 60 lek in most bakeries.
Meanwhile, the Competition Authority is also monitoring the situation.
“Currently, the bakeries are the victims of the situation. Bakeries complain flour prices are sharply increasing and that’s why the monitoring of flour bills will be one of our priorities,” Koco Broka, a commissioner of the Competition Authority told reporters.
However, producers say the increase in bread prices, is unavoidable as long as prices in international markets, where Albania imports 85 percent of its wheat needs, continue rising.
Murat Klobocishta, the head of the Agri-food Traders Union dismissed accusations of abuses, saying that the price increases were only the reflection of what’s happening in international stock markets.
He says the prices can be kept at the current rates only if the 2 percent customs duty and the 20 percent VAT on wheat import is reviewed.