Bread Costs More in Luhansk Oblast

Even before harvest time it was clear that the yield of grains in Luhansk oblast would be much lower than in the previous year. Such a complicated situation was further aggravated by problems related to fuel and oil supply. In a word, the situation developed such that an increase in price for grain, and, consequently, bakery products, could not be prevented. However, oblast leaders tried to dispel the people's anticipation by saying that no increase in bread price was planned. However, in less than one month the local authorities officially announced that they were compelled to increase prices for bread, mostly of the first quality range, 5-10%. They explained this by the fact that the cost of the newly harvested grain was 37% higher than last year. Today, oblast leaders are trying to correct the situation, and to stabilize prices. Flour prices were negotiated with leading grain processing plants, maintaining the existing levels for rye flour, classes I and II. Similarly, leading bakeries maintained prices set in December 1996. Retail prices for bread sold through the outlets of the Kurovay Co., the major local bread producer, have been set to include a profit margin of 15%, and not 25% as before August 20. However, as of September 7, bread prices had not yet fallen. Currently in Luhansk, Seliansky white bread costs UAH 1.30, bread sticks 90 kopiykas, and rye bread 90 kopiykas.