The Competition Authority has called the bread price increases abusive and announced an investigation
TIRANA, August 9 – Albanian bread producers warned this week they will soon increase prices after a surge in international wheat markets following Russia’s decision to ban grain exports for the rest of the year. Bread producer say flour prices have increased by 1,000 lek (10 dollars) per 100 kg, reaching 5,200 lek, up from 4,200 lek a week ago.
“We haven’t increased bread prices yet but an increase is expected in all Albanian bakeries because of the sharp increases in international markets.
Currently, a 1 kg bread is sold 60 lek but local media reported the price went up by 10 lek in some Tirana bakeries on Monday.
Gezim Peshkopia, the head of the Bread Producer Association warned bread prices could increase to 100 lek by next October as the situation in international markets deteriorates.
All bread producers, some 2,000 will be affected by the situation, the Association’s head told reporters.
Meanwhile, the Competition Authority has called the bread price increases abusive and announced an investigation.
“Operators abused price increases in international stock markets in July,” Koco Broka, a commissioner of the Competition Authority told local media.
Last year, the Competition Authority fined two wheat importing companies a total of 66 million lek (660,000 dollars) because of abusing their dominant positions by fixing prices during the whole of 2008.
Wheat prices have risen 25% this week as drought and fires have devastated crops in eastern Europe and led to Russia banning the export of grain.
Russia was the world’s fourth largest wheat exporter in the 12 months to June behind the US, the EU and Canada, according to the US Department of Agriculture.
