The national caretaker committee secretary, Association of Master Bakers and Caterers of Nigeria, and Chairman, Mushin local government area, Evangelist J.O Adejare told Vanguard that the Federal Government should be held responsible on the recent increase in price of bread. He disclosed different moves made by his members to avert the sudden increase in price of this essential food, bread. Excerpt.
Recently bakers embarked on a three day strike in Lagos, why did they go on strike?
It happened that government increased import duty on wheat and initially it was 5% levy and later they introduced 15% duty and 5% levy on importation of wheat, making it 20%. At that point, the 20% increase on wheat which was part of the budget this year read in January 2012 with commencement date on July this year.
Since then, we have been holding meetings with FG to find solutions on this issue. All is on local cassava project, how to use to it for local baking of bread, which was initiated by Federal Government in 2004. Right now, the flour millers in order to remain in business increased the price of flour with N1,000.00, and with this increment, it is difficult for bakers to cope with bakery business.
Before now, flour was sold N6,500.00 but now is N7,500. This situation forced bakers to jerk up the prices of their products with 20%. And we have informed the public the situation we see ourselves in the bakery industry. At the national level, we registered our complaint when we met with the Federal Government in a conference at Abuja. They told us about the price hike in flour and bread and the reason because when import duty on wheat increases, it will definitely affect the two.
With what FG resolved at that meeting, the National body saw that there was nothing they could do about it, so they through state chapters instructed bakers to increase price of bread by 20% the same margin at which wheat was increased. The order was passed in July to all the states chapters.
But in Lagos, we held meetings on how to effect the hike in price and it was decided that it will take effect from September 1, 2012 but we decided that before we could achieve that especially in Mushin Local Government, we had to down tools for three days which we did, and Lagos state on its own was one day because there was going to be a gathering of bakers at Ikeja Police College to sensitize our members on how to effect the new price on bread.
Chief Olusegun Obasanjo, International Institute of Tropical Agriculture ‘Goodwill Ambassador’ and former President of Nigeria, eating bread with 50 per cent cassava content; and IITA Scientist, Dr. Gbassey Tarawali in Abeokuta
The N1,000 increment by millers, was it as a result of the duty increment on wheat?
They told us that the increment was the resultant effect of duty on wheat. Before the new increment, it was sold N600 and then they assured us that it will not be increased again. But at the meeting with the millers at the national level they surprised us by increasing it to N1,000.00, and when we asked them reason, they said there was a drop in the American wheat market and because of rainy season which affected it, its price has to go up now because most farmers in American are now concentrating on rice, grain and other things because rainy season. So, wheat now goes for the highest bidder. They also blamed this situation on government.
So, in our last meeting with Federal Government before this price issue came up, Okonjo Iwuala and Adesina Adewumi, minister for Agriculture were there, and we discussed at length on this issue. We told them that we are interested to partner them on the project of using our local cassava for bread baking but advised them to suspend the 20% duty increment for now till all machineries for this project is ready.
But FG said they wouldn’t suspend it because they will generate revenue from the increment to sponsor the cassava/bread project that they government had been planning for it before now, so we should bear with them, and even if it will amount to increase the price of bread and others, they should go ahead to do that.
Which country does Nigeria import wheats from?
America is our main source of important even though other countries in Europe, Ukrain and others are there, but America is the largest wheat producer.
In your meeting with the FG, when did they say government will kick start the cassava/bread project?
I’m part of that discussion in Abuja as a national care-taker committee secretary of bakers, and I have been in the system since 2004 when Obasanjo was there. I attended all the meetings at national level.
And they came up with this issue cassava/bread project and we asked them how serious is the government? Again, they restated government commitment to the project that apart from the huge amount of money expected from it, the project will also revive our agricultural products. And we told them that if they want the bakers’ support, government should assist us with the provision certain equipment. Initially in the budget, they gave us 12% waver and that was not beneficial to us at the local level even though they had it in mind it is for all levels, we made it known bakers are of different categories.
We let them know that government has abandoned us over the years we have been crying for help in the bakery industry at our levels. We also told them that the 12% waver will only affect the multi-nationals, and the Nigerian bakers will not enjoy it because we can’t even import any equipment due to the stiff conditions attached to importation.
So, when we solicited their assistance financially and in other areas that would make bakery business easy for us. Based on that, they asked us to submit requisition order to cushion the effect of high cost of production and we did, but at the end in a list of six to seven items submitted only three items, electric ovum, mixer and chiller were granted.
Ironically they came up with Cassava/bread development fund committee in Abuja the same day. The reason for that committee according to government is that they are going to concentrate on local cassava to produce bread and increase import duty on wheat to 100% flat and money realised from duty will be used to fund local bakers, cassava/ bread and purchase of necessary equipment for the cassava/ bread project.
How is the effect of the increment on the local bakers?
It’s affecting the local baker seriously. That is one of the reasons we jerked up price to help us a little in production cost because most bakers are baking at lost. Many bakers have the left the business for okada riding.
The reason is that those who are producing 5-7 bags of flour every can’t even finish 2 bags in a day. How much would you gain from such production to take care of your family responsibility. The business is now worse.