“The price of Lebanese bread is set to rise by around 15,000 Lebanese pounds in mid-September, reaching 70,000 pounds,” stated Antoine Seif, President of the Union of Bread Manufacturers, in an interview with This is Beirut. He explained that this increase is expected due to the anticipated depletion of the country’s subsidized wheat stocks. However, Seif added that “this situation could change if the government decides to continue subsidizing wheat in some form.”
Seif also pointed out that the wheat subsidy is now reduced to 60%. He emphasized that bread pricing depends on more than just wheat, it also includes factors such as sugar, yeast, water, labor, fuel oil, electricity and plastic for bags. Consequently, fluctuations in oil prices, overall inflation and rising government taxes all impact the price of bread.
It should be noted that Lebanon and the World Bank reached an emergency agreement in May 2022, worth a total of $150 million, to ensure food security in Lebanon by supporting wheat imports. This agreement followed negotiations that began two months earlier with a World Bank delegation, prompted by the Russian offensive in Ukraine and concerns about a global food crisis. This is especially critical for Lebanon, which imports its wheat primarily from Ukraine. The ongoing war in Ukraine and the economic and financial crisis in Lebanon have heightened the risks of a local food crisis.
