THE price of a loaf of bread is likely to increase by about 20 cents soon due to a worldwide shortage of flour.
Drought and bad weather in wheat-exporting countries such as Australia and Canada have resulted in low harvest and caused flour prices to shoot up by about 30 per cent.
A 25kg bag of flour, which used to cost $19 a month ago, is now $25, said flour distributors here.
According to them, this is the biggest price jump in the history of flour sales.
Just last month, flour prices were increased by about $1.50 for every 25kg bag.
In fact, some flour distributors here are expecting the price of flour to go up further.
One of them, Seng Hong, said: "The problem of short supply of harvest is not going to end any time soon, yet demand has remained high."
Bakeries are expected to increase the price of their loaves now that the cost price of their main ingredient has gone up by so much.
Sweetlands Confectionary in Kim Keat Lane will charge up to 20 cents more for its products.
The price of a 900g loaf of bread at the shop is going up to $2.40 from $2.20 previously. Smaller-size breads, such as mini baguettes, will cost eight cents more.
Its owner, Mr Ng Yek Heng, 51, said: "Bread that needs more flour to bake will cost more."
Major bakeries such as Gardenia and Sunshine were not contactable at press time.
However, a Straits Times reader wrote in to the Online Forum last month saying that Gardenia has increased the price of its jumbo loaf since July by 10 cents to $2.
The letter writer had expressed shock at the price hike.
