Shortage of wheat flour likely as suppliers look to increase prices

The confectionary and bakery item manufacturers are cautioning that the country is likely to witness a shortage of wheat flour, with the suppliers holding back their supplies with the intention of increasing the prices, while the authorities resisting a price hike.

While the All Ceylon Bakery Owners’ Association (ACBOA) said that its membership is already struggling with production, due to a shortage of wheat flour, the Lanka Confectionery Manufacturers Association (LCMA) shared that Prima Ceylon (Pvt.) Ltd has communicated to some of the members of the association that there would be a short supply of wheat flour.

Speaking to Mirror Business, LCMA Chairman S.M.D. Suriyakumara said that the prices of wheat flour of different types used by the confectionery industry have increased by about Rs.22 per kilo over the last six months, which adds to the woes faced by the manufacturers.

Prima Ceylon’s decision to trim supply would deliver a massive hit to the confectionery manufacturers, as the company caters to over 85 percent of the wheat flour requirement of the industry.

“A shortage will put us into even deeper trouble since wheat flour is one of the main ingredients used in the confectionery and bakery industry. 

If Prima goes forward with its decision to short supply, we will be severely impacted in the short term since we have no other alternatives,” said Suriyakumara.

He also pointed out that while it is possible to import, there are concerns regarding the quality of the different types of wheat flour since at present it is sourced at specific standards.