Fedusa says price hike will affect poor

By Jurina Nkwazi
11 August 2010

The Federation of Unions of South Africa expressed their concern at the expectations that there will be an increase in the price of bread and wheaten flour.

Fedusa says consumers can expect a price increase by October this year and this will mostly affect the poor.

The increase is due to Russia facing its worst drought in 130 years who might place a ban on wheat exports.

Fedusa's general secretary Dennis George said the crisis would result in devastating results since bread in South Africa was already costly for the poor.

They have called on government for a solution to help protect the poor from the price increase of bread and for import taxation of grain to be reduced from R200 per ton to zero.

A survey showed a loaf of brown bread would now cost between R8.50 and R10.10 and a white bread can almost R13.85.

“The increase in the bread price would also mean that local farmers would be adversely affected since for the first time in 100 years South Africa would have to import more than half of its wheat demand,” George said.