Decision to raise bread in Istanbul

At yesterday’s parliamentary meeting of the Istanbul Chamber of Commerce (ITO), a new increase in bread was decided.

According to the decision to be implemented from January 1, the price of a kilogram of bread in Istanbul increased by 28.9 percent to 25 TL.

Thus, the bakers who currently sell 260 grams of bread for 5 TL in Istanbul will have sold 200 grams of bread for 5 TL. The weight of bread, which will continue to be sold at 5 lire as of January 1, will have decreased.

According to the information we received from ITO officials, 240 grams of bread can be sold for 6 TL after the New Year.

MINISTRY OF COMMERCE REJECTED BUT…

The field proposal is first reported to the board of directors and evaluated, so that the decision to raise the bread is taken at the ITO Assembly. If deemed convenient, a five-year commission is convened, made up of the provincial director of commerce, the provincial director of agriculture, the president of the trade union chamber, the chamber of commerce, and municipal officials. The decision is communicated to the Ministry of Commerce.

According to the information we received, the Ministry of Commerce gave a refusal to the decision to raise the bread. However, this does not prevent parliament from voting.

In the Assembly of the ITO, which met yesterday, the decision of the increase was accepted by a majority of votes, with the approval of all the members of the proposal of increase in bread. However, it was decided that the new price increase would be implemented after January 1.

A NEW INCREASE IS NOT EXPECTED UNTIL JUNE

The officials who gave information to Sozcu.com.tr stated that this situation may cause two types of bread prices to occur in Istanbul after January 1.

Consequently, bakers in some districts of Istanbul will be able to continue selling the bread whose weight has been reduced by 5 lira, while some bakers will increase the weight to 240 grams and sell it for 6 TL.

Weight changes made so that a kilogram of bread does not exceed 25 liras can increase or decrease the price.

Explaining that flour prices have followed a flat trajectory for the last 3 months due to the effect of the flour subsidy granted by TMO to bakers, the officials stated that they do not foresee a new rise in the price of bread until June if the evolution of flour prices do not change.

He pointed out that they considered the last increase necessary due to the increase in labor costs with the increase in the minimum wage and the effect of the energy increases that will take place after the new year.

INCREASED BY 71.4 PERCENT IN ONE YEAR

On the other hand, the offer to raise the bread that the bakers offered to the ITO Assembly in August was accepted yesterday after the ITO midterm elections.

It was on the agenda that bread prices, which increased from 1.75 TL to 2 TL in May last year, would increase to 2.5 TL at the end of the summer months of 2021.

Bread prices, which were officially increased by the ITO approval on November 11, 2021 and increased from Lira 2 to Lira 2.5, increased to Lira 3 and then Lira 3.5 in some districts in the following months.

By May 2022, some bakers, who did not wait for the official rate, started selling bread for 4-4.5 TL in some districts.

At this point, bread prices will rise 71.4 percent in one year (from early 2022 to January 2023).