Jul 31 2010 |
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Growing wheat prices burn UAE's roti makers
The sharp increase in the global wheat prices is worrying several hundred Afghan tandoori roti makers whose profit margin is coming under pressure.There are many Afghan tandoor outlets in different parts of the UAE which solely make the traditional Afghan bread, especially for customers from Afghanistan, Pakistan and India.
Wheat prices have been skyrocketing due to an alleged cut in production in Russia, Europe and flooding in Canada and wheat growing areas of India. India, the second largest wheat producer in the world, is reportedly facing an "emergency situation" of a lack of storage for its grain stocks, with about 10 million tonnes of wheat and rice at risk of rotting due to exposure to monsoon rains.
The Afghan nanwais (bread-makers) said the volume of rotis sold per day has come down by almost half and some of the shops have closed because of pressure on margins.
He said the profit margins of roti makers have been thin and the volume of business has come down. "We used to sell 1,800 to 2,000 rotis per day when there were many customers in the Sharjah Industrial Area. Now the daily sales volume is down to 500 or 600 rotis."
He said Afghani roti is normally bought by inmates of the labour camps and residential buildings in the area.
The Sharjah industrial area has more than 40 bakeries, all engaged in the same business.
© Emirates Business 24/7 2010
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