Israel: Other countries, other problems

Tel Aviv / IL. (jp) According to «Jerusalem Post», the Israeli Knesset Economic Affairs Committee ordered bakeries to temporarily begin producing price controlled bread and called upon the government to form a special committee to investigate and settle the matter of government controlled bread prices.

«The situation that we find ourselves in today is that anyone who is looking to purchase less expensive bread is being forced to buy bread that is at least ten percent more», said Gilan Erdan, head of the Economic Affairs Committee, to the newspaper. «The economy is suffering because the Industry, Trade and Labor minister is insisting on bakeries selling products at lower prices. Bakeries have thousands of employees that they need to pay – if prices are not raised, the bakeries will suffer terribly», Erdan added.

Erdan went on to say that he sees only one possible solution to the problem, which began a few days ago, when the country´s major bakeries, including Angel Bakery, Davidovich Bakery + Sons, Berman´s and the Alumot Bakery in Holon decided to halt the production of price-controlled breads as mills raised flour prices by some 35 to 40 percent in response to the sharp rise world-wide flour prices over the last month. Bakery owners have been demanding that the government raise by some 12,5 percent the amount that can be charged for price-controlled breads, which comprise 17 percent of all breads sold in Israel (full text).