LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


(Guest)

Maida-Rs.40,Atta-Rs.25 But Maida Bread Rs.7/-Atta Bread Rs13

Please re-read,
Maida(Refined Wheat Flour)-Rs.40/,Aatta(Wheat Flour)-Rs.25/-,BUT why Maida Bread Rs.7/-& Aatta Bread Rs.13/-?Why not Aatta Bread should be sold on Rs.4/- accordingly ?



Learning

 8 Replies

Suchitra. S (Advocate)     10 July 2010

Interesting question, Madhu Sir. But you are mistaken about the rates and that is why the doubt. Actually, maida is cheaper than wheat flour for the following reasons :

Maida (white flour) is shelf stable. Whole wheat is not. Whole wheat still has the germ which has oil that goes rancid after a few months if it is not refrigerated. Refrigerated storage costs more than non-refrigerated storage. Also everyone has started to use more whole foods (is much healthier), so the manufacturers has started to get the profit of it.

1 Like

Bhartiya No. 1 (Nationalist)     10 July 2010

Interesting question Madhuji.

Suchitra Madam is right, there must be something which we may not be knowing about the difference. For that we will have to extensive survey. Just see how costly is cornflakes made of maize. In the name of processing they are chrging exorbitantly. Also see potato is being sold at below Rs 10/ kg but chips of one potato costs Rs 5/-. During feb and march the cost of potatoes were less than Rs 5/kg.

1 Like

Baskaran Kanakasabai (entrepreneur)     10 July 2010

Moreover the process of bread-making with maida and wheat flour involves different amount of leavening agents like yeast, hydrogenated vegetable oil, emulsifiers like lecithin and preservatives which individually  have different costs. Therefore, the end price of breads with maida and wheat flour differs disproportionately. If one obtains a cost break-up of  a unit of bread of both varieties from a knowledgeable bread-maker, this aspect can be well-understood.

1 Like

Arup (UNEMPLOYED)     10 July 2010

yes mr madhu, you have the sense of observation in micro level.

i think root cause based on demand and supply.

1 Like

Sanjeev Kuchhal (Publishers)     10 July 2010

In case of choclates, in Fruit and nuts variety, in the ingredients of dry fuits are added instead of choclate. By addition of cheaper ingredients the price of final product goes up, WHY?

Raw choclate is costlier than the dry fruits used.

1 Like

Bhartiya No. 1 (Nationalist)     10 July 2010

Also one of the major factor that we or any govt. machinery do not have any price control or fiixation mechanism on these items. Company's are uncontrolled in this regard and in spite of market being competitive they are making huge profit and paying excetional salary to their mangerial staffs. All company' & MNC are in looting spree. No controll of govt. is there on irrational pricing and quality of any packaged food products. Collusion may be possible.

1 Like

(Guest)

Suchitra Ji,I have re-confirmed,Maida is not cheaper that Aatta (wheat flour), Maida is almost double the rate of Aatta.

Ved   20 January 2021

Economies of Scale.

People prefer maida bread more than whole wheat. Taste of maida bread makes it compatible with other secondary foods you eat with it. For e.g. jam,  burji, etc. List of things you can eat with whole wheat bread is less. Some people also don't like taste of it even though it is good for health. 

Manufactures want their profuct to be sold. Probabilty of wheat bread getting bought is always more than probability of buying whole wheat bread. So manufactures buy huge quantity of white flour instead of grinded whole wheat. So even though cost of maida is greater than whole wheat at micro scale but due to excessive buying of maida give leverage to manufactures to lower the price.

Whereas if you see through marketting prespective people who buy whole wheat bread are generally diet conscious. And people value medicine more than food. So even though you increase the prices buy 1-2 rupees they are going to buy that type of bread. And it also gives them social credit which are pyschological wins that even though there are other breads at lower prices they chose something more valuable for their health.

If you keep low or same as maida bread you are not going to get profitable and health conscious people will keep away from your brand because for them it is some cheap wheat bread product.

I read many comments that manufactures & seller are not regulated and are given free reign. Controlling prices did not work for soviet neither it will work for us. You have to let people decide what they are going to price their product at because if we go another way around there are some undesired consequences. In the end costumer decides wheather to buy a certain product or not. If its affordable they will buy not they will not. 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register