site.btaIncrease in Bread Prices Is Speculation, Agriculture Minister Says

An increase in bread prices is rather a speculation. Unfortunately, Bulgaria does not have national law to fight speculations, Agriculture Minister Ivan Ivanov told journalists in Pomorie on Tuesday.

At a meeting with Ivanov, bakers and grain producers have guaranteed that there is enough grain of yields from previous years bought at low prices, and enough grain of the new yield, as well, to prevent the bread prices from spiking, Ivanov said, answering a question what measures the Agriculture Ministry will take to halt a future increase of bread prices.

According to the Minister, the natural gas price rise may cause bread to appreciate but currently a spike in bread prices is just a speculation.

“You know that the Agriculture Ministry supports the idea envisaged by the Bulgarian Socialist Party (BSP) to lower the VAT rate for certain goods of the small consumer basket. We believe this will have a direct impact on end consumer prices. We will defend the idea at the ruling coalition council so it could be implemented under the state budget update. However, this depends on the other partners in the coalition, as well,” said Ivanov, who is a member of the BSP National Council.

On Monday, Minister of Economy and Industry and BSP leader Korneliya Ninova and the Bakers and Confectioners' Union Chair Mariana Kukusheva discussed the rising prices of bread. Ninova confirmed that she supports lowering VAT on bread from the current 20% to 0%. Kukusheva was positive that such a move would be beneficial for the end user.

Ivanov added that currently there is a stabilization of grain prices as the 2022 yield is expected to be good.

He also said that grain export has not stopped and provides for the needs of other EU Member States which lack grain. “We provide for them as this free supply of goods and services ensures food security for the whole of Europe”, Ivanov noted.