Bread Prices Surge Nationwide as Bakers Blame Wheat and Fuel Costs

Consumers across Uganda are digging deeper into their pockets following a nationwide decision by bread manufacturers to increase prices. Operating under the Uganda Bakers Association, industry leaders announced that escalating production expenses have left them with no alternative but to adjust wholesale and retail rates to keep their businesses viable.

Under the updated pricing structure, a one-kilogram loaf of bread that previously sold to retailers at Shs 5,000 at the factory level has climbed to Shs 5,500. As a result, end consumers buying from retail shops are now paying between Shs 6,000 and Shs 6,500. Similarly, a half-kilogram loaf has moved from a factory price of Shs 2,500 to Shs 3,000 wholesale, with retail prices ranging from Shs 3,300 to Shs 3,500.

Speaking at a press conference held at Ntake Bakery in Nalukolongo, the association’s chairperson, Canon Dr Gaster Lule Ntake, explained that manufacturers had absorbed surging operational costs for as long as possible to cushion ordinary citizens. However, the financial pressure eventually became unsustainable. Dr Ntake urged retailers not to exploit the situation by imposing excessive profit mark-ups on everyday families.

Isaac Njoroge of Jonisa Bakers Limited pointed out that about 80 percent of all raw materials used in commercial baking are imported. This heavy reliance leaves local producers vulnerable to global supply chain disruptions and foreign exchange volatility, particularly the strength of the US dollar against the local currency, which drives up the cost of wheat and additives. Furthermore, the industry depends heavily on diesel to power heavy machinery and run distribution fleets nationwide.

The association has made an urgent appeal for government intervention, suggesting targeted tax relief or policy measures on energy and agricultural inputs. Bakers have promised to review prices downward once global wheat prices stabilize, exchange rates calm, and local fuel costs subside.

Read more details in the Daily Monitor report.