Lebanon

Will Bread Disappear from the Market?

Will Bread Disappear from the Market?

The clock has struck for lifting subsidies on flour; the Minister of Economy in the caretaker government, Amin Salam, made the decision indirectly by refusing to sign the subsidized flour schedule today, and he declined to respond to calls from bakery owners. These bakers remain without flour as the mills have refused to deliver any without the signed schedule, which translates in the bakery language to "no flour, which means no bread." Has the loan from the World Bank ended, or is it about to end? Is Salam looking to create a bread crisis to lift the subsidies, after which the price of a loaf could rise to 100,000 lira or more?

According to sources in the Bakery Owners’ Syndicate, the problem arose the moment the minister refused to sign, especially after he changed the distribution schedule from once or twice a week to a daily schedule, which imposes daily transportation burdens on bakers, increasing costs. More dangerously, he did not sign the schedule.

Once again, talk of lifting the support for the bread of the poor has emerged; this time it seems things may soon reach a critical point, beginning with withholding flour from bakeries. Will bread disappear from the market tomorrow?

The problem began on Monday morning when bakery owners were surprised by the lack of the usual signed schedule. After numerous attempts to contact the minister for clarification, he did not answer, which confirms, according to sources, that "the World Bank loan is nearing its end, and the crisis has made its appearance by drying up the market of subsidized flour." The sources expressed surprise, speaking through "Nidaa Al-Watan," at the minister's failure to sign the daily flour schedule as usual, stating it "could be a preliminary step to lift subsidies on flour." They noted that previously, the schedule was signed twice a month, enabling bakery owners to receive their needs for subsidized flour for 15 days. However, this system was abruptly changed to a daily schedule.

The sources stated, "If flour is not delivered, there will be no bread tomorrow, which may lead bakeries to buy market flour at a free price, possibly raising the price of a loaf of bread to 100,000 lira." It seems the bread crisis has begun, and the battle between bakeries and the minister has entered a delicate phase after Salam ignited the crisis by refusing to sign the subsidized flour schedule, at a time when he hasn't even considered the plight of the poor.

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