Members of the Baker's Association have said a product increase of an estimated ten per cent will be effective immediately, following the purchase of their next batch of flour from the National Flour Mills.

The Kiss Baking Company Ltd which is not a member of the association but holds a large percentage of the local market share (in relation to the baked-goods industry) will also be raising their prices. Though Rene de Gannes, Kiss's marketing manager was not available for comment when the Express tried to reach him on several occasions yesterday, a member of the sales department said their products would be going up next week.

The Baker's Association said the move to increase their products, had become necessary following the sharp increase in flour prices which the National Flour Mills had recently put into effect. The estimated 24 per cent increase which the company added to their flour prices came on stream earlier this week.

NFM justified the increases in a release recently. The company said the volatility of the international wheat industry is making the market uncertain and unpredictable. The company attributed the increase to external factors such as an increasing global demand for the product, adverse weather conditions in areas that the raw materials to make flour are grown and the scarcity of land to grow more wheat, as farm land is currently being used for the production of bio-fuels.

The price increase is the latest evidence that higher world commodity prices are leading to sharp increases in the local cost of living.

Speaking to the Express yesterday, one executive member of the association, which includes popular bakeries like Pascal's, Freddies, Linda's, Chee Mooke and Lucky told the Express the association believes that government should subsidise wheat and flour prices for locals, but their suggestion was "shot down" when they attempted to put the idea to representatives of an NFM meeting last month.

The member, who spoke to the Express on condition of anonymity, said, "We have the money, why don't we use it on something that will benefit the people."

When contacted yesterday evening, Minister in the Ministry of Finance Mariano Browne said he was not in a position to discuss the matter (of a flour or wheat subsidy).

The source said the flour bill at the bakery where she operates has gone up by approximately $10,000 a week as a result of the increased prices.

"I used to pay $222 a bag, now I have to pay $286; for every bag, the increase is significant," the source concluded.