Wednesday, November 14, 2007

Bread shortage created by municipality

If prices are allowed there won't be shortages. Here's a classic example from today's news of a shortage created by government price intervention:
Fujairah: For the second day running, small bakeries have stopped supplying grocery shops over a price dispute with the municipality.

A number of bakeries have already hiked the price of Arabic bread to Dh3, after getting approval from the municipality's consumer protection department.

The dispute started after the consumer protection department insisted on vetting each bakery's price list. The municipality had ordered small bakers to roll back their prices until the case of each bread-maker is assessed.
Bakers cite a steep increase in flour prices, along with other costs of labour and transport, as the main reason for rising prices.
Read it all in the Gulf News.

And here's more bread news from the yesterday's Gulf News: Bread to cost 20% more from next week .



Anonymous said...

So, I don't actually suppose this may have success.

8:30 PM  

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