Economy

Inflation of Manakish Prices!

Inflation of Manakish Prices!

The crisis of Arabic bread has been temporarily resolved, but it has created another crisis as the support has been limited to flour designated for Arabic bread only. This means soaring prices for manakish, French bread, hamburger buns, baguettes, and others. After two days of humiliating searches for a loaf of bread, a 'solution' to the crisis has been decided in two phases; the first began yesterday when the Minister of Economy decided to 'redistribute the surplus wheat available at some mills to the other mills that have stopped working. Consequently, the mills started working last night, and today all ovens will operate and deliver Arabic bread normally to citizens,' according to the head of the Mill Owners Syndicate, Ahmad Hattiq. The second phase is being discussed today in the Cabinet and is based on 'promises we received from the Minister of Economy, after communication between him and Prime Minister Najib Mikati, that additional credits will be allocated for four ships loaded with wheat during today's Cabinet session.'

It is noteworthy that this issue could have been managed in this way since the onset of the crisis, which could have spared people the humiliation of searching for a loaf of bread or being forced to buy it from the black market at prices exceeding 30,000 Lebanese pounds per loaf. The reason for the crisis lies in the Central Bank of Lebanon opening credits for four grain ships, the cargo of which went to some mills and not others, resulting in a stock of subsidized wheat sufficient for 20 to 25 days at about half the mills, while the rest stopped working waiting for the Central Bank to open credits for four more ships that would return to them. In other words, the problem was competition over subsidized wheat and its huge profits.

In connection with this, the Minister of Economy's decision yesterday to limit the support to Arabic bread flour only stands out, which will have repercussions "on all ovens, both large and small, and will undoubtedly lead to a significant rise in the prices of manakish, thin bread, French bread, hamburger buns, and baguettes," according to the head of the ovens syndicate, Ali Ibrahim. Ibrahim notes that "the decision to limit the support to Arabic bread only is not temporary but permanent, which means that the $150 million loan from the World Bank designated for buying wheat and maintaining the price of bread loaves will only be restricted to supporting the production of Arabic bread." Regarding the impact of the decision on ovens' operation, he states, "We must wait and see. The price increase will be significant, and we will see who will be able to afford to buy."

Additionally, the agent for mills in the south, Ali Ramal, issued a statement yesterday warning of "a conspiracy against the sector carried out by the owners of large ovens and Arabic bread cartels because they also produce manakish and croissants from standardized flour by adding some enhancers," calling for "the removal of support from all people, or the support of flour for everyone." He believes that "if this decision is not reversed, you will see thousands of affected families in the streets." In response to Ramal's remarks about the existence of a conspiracy, Hattiq points out that "this decision is issued by the Ministry of Economy, and we are obliged to follow the instructions and deliver as requested."

Rida Sawaya - Al-Akhbar

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