Beirut warns bakers not to make good on vow to raise prices
Lebanon”s bakeries announced on Wednesday that they would hike the price of Arabic bread from LL1,5000 to LL2,000 on Thursday, in a move strongly criticized by the Economy Ministry as both illegal and "unjustifiable.
"After a meeting on Wednesday, the general assembly of the Union of Bakeries said that surges in flour and gas-oil prices had forced them to raise the prices of bread.
Kazem Ibrahim, the head of the Union of Bakeries, told The Daily Star that the cost of bread is becoming so high that "many bakeries are recording losses these days."
He added that gas-oil prices have risen from LL25,000 per 20 liters to nearly LL37,000.
"People assume that bakeries are loaded with money but the fact is we are suffering just like any other Lebanese," Ibrahim said.
But Economy Minister Sami Haddad urged the bakeries not to tamper with "the daily bread of the citizen." Speaking at a press conference at the Grand Serail, Haddad said his ministry was doing all that it could do to ease the pressure on bakeries.
He warned that he would stop supplying any bakery with flour if it raised the prices to LL2,000 per 1,250 grams of Arabic bread. "I will apply the law against any bakery which raises the prices of bread tomorrow," Haddad said.
Sources said the ministry would also apply penalties on all bakeries that raise prices.
"I am more than willing to discuss all the problems with the bakeries, but first I urge them to reconsider their decision to raise the prices of bread," Haddad said.
But the minister”s threat only aggravated the bakeries.
"I dare Haddad to stop supplying us with flour because the first thing we will do is close all bakeries," Ibrahim warned.
He added that the government”s current wheat subsidy is insufficient. The price of a ton of wheat is $460 in the international market but the Economy Ministry agreed on Tuesday to increase the subsidy to bring the price of a ton of wheat in the local market down to $250.
All the bakeries which attended Wednesday”s general assembly agreed to stick to the union”s decision. "I can honestly say that 90 percent of the bakeries will change the prices of bread," Ibrahim said.
Anis Bechara, another bakery owner, assured that the move was not aimed at the citizens.
"We prefer that the state supports the bakeries instead of raising the prices. But since the government is not keen on helping us then we are obliged to review the prices," Bechara said.
But the head of Consumers Lebanon, Zhuair Berro, rejected the bakeries” justifications for raising prices. "The government is subsidizing the prices of wheat and flour by 25 percent at least. This is the best thing the state can offer under these circumstances," Berro said.