Bread being made in a bakery in Lebanon. (Credit: Mahmoud Zayyat/AFP)
According to Ahmed Hoteit, president of the Mill Owners' Association, the price of Lebanese bread, commonly known as "Arabic bread," is expected to increase by LL5,000 to LL6,000 within a month as the stocks of subsidized wheat run out.
He stated that the subsidized wheat provided by a World Bank loan should last until mid-September. No plans to resume the subsidy have been discussed. Hoteit noted that even without the subsidy, the cost of wheat-to-flour processing was not subsidized. The transition will be from subsidized wheat priced at LL60,000 per dollar to wheat purchased at LL90,000 per dollar.
Lebanon currently subsidizes only wheat used for making Lebanese bread. This subsidized wheat is sold to mills for flour production, while wheat for other types of bread, such as baguettes, toasts and sandwich bread, is not subsidized.
In May 2022, the World Bank provided Lebanon with an emergency loan of $150 million to ensure a steady wheat supply and keep bread affordable for vulnerable households. This loan began being implemented in February 2023.
