Discussions over whether the bakers’ demands to either increase the subsidy on the production of the traditional Maltese loaf, or to raise the regulated price by two cents per loaf, will continue today, sources told The Malta Independent.

Malta’s Bakers’ Cooperative has threatened halting 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 yesterday to assess the situation.

However, a government spokesperson said that, following new developments, discussions will continue today.

This situation arose when the price of a 50-kilo sack of flour rose from Lm7.08/EUR16.52 to Lm8.68/EUR20.26.

However, as compensation for the Lm1.60 (EUR3.73) increase, 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.