We are categorically against state interference in purely market relations. The state should not be allowed to raise the price of bread once again through measures called "critical". This was said by the Chairperson of the Management Board of the National Branch Union of Bakers and Confectioners Mariana Kukusheva in an interview with "Focus".
"Promotions are the only market form that can reduce bread prices for a certain period of time," she said. "But since this happens every day, you understand that the market does not need state intervention", added Kukusheva.
She recalled the effect of the return of 20% VAT on bread and flour from January 1 this year. "This automatically increased the price of bread. Thus, the state from a mediator and regulator turned into a price factor", pointed out the chairman of the Management Board of the National Branch Union of Bakers and Confectioners."
According to her, currently there is a feeling in society that it is possible for food prices to be reduced or their increase to be stopped."
However, logistics costs are constantly increasing because the prices of oil and human labor are rising, she explained."
"In Bulgaria, tolls have increased twice this year, and a third increase is expected in September, at the latest in October. In the last two weeks, the price of diesel in Bulgaria has increased by 30 stotinki. In this way, the cost price of every product and service is increasing. We are very concerned about such interpretations, which claim that the price of bread can be suppressed through state measures that can curb inflation. Inflation is a result of an unlawful increase in wages in some state sectors - in some up to 70%. In this way, inflation is pumped up, it returns to us and we are obliged to increase the wages of people employed in bread production,“ explained Mariana Kukusheva.
Currently, there is an overproduction of bread wheat and its stock exchange price is the lowest in the last 15 years. “But processing wheat into flour and then processing flour into bread costs energy, human labor, a lot of insurance, and finally there is the 20% VAT that the state collects daily from the sale of every loaf of bread produced in Bulgaria,“ added Kukusheva.