Kanpur bakeries are on verge closure as the prices have spiralled out of control . Big companies and multinational have economies of scale in their favour . Competing with these big companies have become impossible and population in rural areas have shifted their loyalties towards these big companies .The state government has also discontinued the ‘compounding’ facility provided to the small bakers with more than four burners.
There was provision of mere 3-4 per cent trade tax under the compounding system while now it has risen to 12.5 per cent under value-added tax (VAT) system. Quota for small bakeries for flour and sugar has been discontinued by govt .
Smaller companies give employments to thousands of local population . Around 44 small and medium units have closed down in past four years in the city itself confirmed by UPBMA - Uttar Pradesh Biscuit Manufacturer Association .
UP govt has to take appropriate steps to prevent loosing jobs or extinction of these once prosperous bakeries .
