The authorities were still in discussions yesterday over demands from bakers to either increase the subsidy on the production of the traditional Maltese loaf, or to raise the regulated price by two cents per loaf.

Malta’s Bakers’ Cooperative has threatened putting the brakes on the production of the hobza tal-Malti, the price of which is regulated, and instead only produce other types of bread, which are not regulated.

The cooperative had given the government until today to assess the situation.

A government spokesperson yesterday confirmed that discussions were underway, but that a resolution to the standoff was still pending. It was unclear by the time of going to print yesterday whether the bakers’ intended making good on their threats today.

Matters came to a head recently when the price of a 50-kilo sack of flour rose from Lm7.08 (EUR16.52) to Lm8.68 (EUR20.26).

But as compensation for the Lm1.60 (EUR3.73) hike, and with bakers consuming some 7,000 50-kilo sacks per week, bakers are demanding subsidies that would cost the government in the region of Lm11,000 (EUR25,670.49) per week – or Lm572,000 (EUR1,334,865.59) as an annual figure.