Russias most popular bread, the chopped white loaf, could disappear from shop shelves if authorities proceed with strict price caps on extensively consumed products, the owner of the nations biggest bakery and confectionery holding warnedon Monday.The remarks came after Prime Minister Mikhail Mishustin in March stated the federal government was prepared to embrace the toughest steps to consist of food inflation.
He noted in specific that local authorities have the power to cap markups on staple food items, which last year published their highest rate growth in 9 years and continue to grow more costly.Alexei Tulupov, owner of the Kolomensky bakery, informed the RBC news site that bread cost caps could require bakeries into personal bankruptcy, lower the variety of bread products available or timely product substitution.Price regulation for eggs, Tulupov argued, caused the development of a lower-quality, cheaper-to-produce liquid egg product.If comparable procedures are used to bread, sliced up loaves could disappear from the market quickly, he said.Data from the state stats service Rosstat show that wheat bread rates rose 14.6% in 2015, a rate one and a half times quicker than total inflation, which the government positioned at 9.5%.
Bread costs climbed by an additional 6.2% from January through May 2025.
Overall, bread costs have actually surged by more than 35% considering that the full-blown invasion of Ukraine in February 2022.
Bread production expenses likewise rose by an average of 27% in 2024, Dmitry Semenov, president of the Russian Bakers Union, previouslysaid.Current lending rates make loans unaffordable; high profitability is needed to service such debts, however pastry shops run on slim margins, he stated, describing the Central Banks 20% key rate.Semenov likewise pointed out workplace scarcities, which reach up to 40% of the staffing levels at private enterprises.Tulupov said raw materials, wages and logistics are the primary expense motorists for bread producers.Logistics-related costs are at least equal to, if not greater than, those for flour, Tulupov informed RBC.These costs are intensified by breads short life span, needing it to be delivered to shops as soon as possible.In March, significant bread manufacturers notified retail networks of an additional 10 to 12% boost in wholesale prices, according to significant bread producers cited by the Vedomosti organization daily.Producers pointed to increased warehousing and transportation costs, greater tax problems and the jump in flour prices following a bad harvest last year as the most significant aspects behind the price hikes.