Fresh bread in a Beirut bakery on July 1, 2020. (Credit: AFP)
BEIRUT — A long-awaited World Bank wheat import program has begun "effective implementation," caretaker Economy Minister Amin Salam announced in a press conference Tuesday afternoon, with a first shipment expected next month.
“The first shipment of 30,000 tons of wheat will arrive by ship … mid-February,” Salam said. Lebanon consumes around 23,000 tons per month, he added.
Additional shipments will follow based on the size and needs of the local market as estimated in studies completed during the last four months, according to the caretaker minister.
The $150 million World Bank loan will secure subsidized wheat for nine to 12 months, Salam said, with the exact duration depending on the global price of wheat.
Salam took a hard line on bakeries and mills, which have complained in recent days that government-set prices for bread are too low to cover operating costs. A representative of the bakery syndicate announced last week a possible halt in distribution to stores and supermarkets if Salam doesn’t increase prices. Salam, for his part, said that mills or bakeries that close to protest prices could face legal action.
After the program ends, he said the ministry plans to work on a subsidy card exclusively for purchasing bread, targeting people with low purchasing power. He voiced hope that the World Bank would be involved in that potential program.
Parliament approved the $150 million World Bank loan on Oct. 18 of last year.
The loan was offered by the World Bank in early May after the war in Ukraine disrupted global supply chains and halted grain exports, leading to wheat shortages in Lebanon.
A potential $8 million appropriation of Lebanon’s Special Drawing Rights to be used on wheat purchases was on the agenda of last week’s cabinet meeting though was not approved. Salam said that caretaker Prime Minister Mikati has told him that if cabinet meets for another session, the item will be approved then. But, he said, the program is not dependent on such a decision and no cabinet decrees are needed to follow through with the ministry’s plans.
Salam described the $8 million as a stop-gap to cover a three-week period of imports until the first World Bank-funded shipment arrives and said funding was already secured for the previous and upcoming time periods.