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Islamists, unionists warn against raising bread prices
By JT - May 14,2015 - Last updated at May 14,2015
AMMAN — Islamists and labour unions on Thursday warned the government against hiking bread prices.
In statements made available to The Jordan Times, the Islamic Action Front (IAF), the political arm of the Muslim Brotherhood, and the Independent Federation of Jordanian Trade Unions (IFJTU) rejected Prime Minister Abdullah Ensour’s remarks about plans to lift flour subsidies, which would result in higher bread prices.
The IAF warned the government against considering such a move.
The government’s experience in delivering subsidies to low-income segments has proven unsuccessful, the IAF statement said.
The IFJTU said such plans would cause anger among Jordanians, threatening to take to the street to express rejection of an increase in bread prices.
Poor people will be the victims of any hike in prices, the federation warned.
At a press conference on Monday, Ensour said the cost of one kilogramme of bread, after removing the subsidy, would go up from JD0.18 to JD0.38.
The premier said the government imports one tonne of flour at a cost of JD350 and sells it to bakeries for JD50, adding that the estimated cost of subsidising flour on the Treasury is around JD180 million this year.
The prime minister added that Jordanians would be compensated for the difference in prices through a smart card if prices of the commodity are liberalised.
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Experts on Wednesday warned against plans to hike bread prices as the government announced it may remove the flour subsidy.
The Consumer Protection Society (CPS) on Saturday called for studying all aspects of any decision related to lifting the flour subsidy, the Jordan News Agency, Petra, reported.
The government will not raise the prices of bread, Government Spokesperson Mohammad Momani said Sunday, noting that Prime Minister Abdullah Ensour was clear in his remarks in this regard.