BEIRUT – The Ministry of Economy and Trade announced in a statement released on Tuesday that a large pack of Lebanese bread, commonly known as “Arabic bread,” will now be priced at LL65,000 as the subsidy of wheat through a World Bank loan “nears its end.” The new price will be implemented starting Sep. 26, 2024.
According to its statement, the ministry said it's been holding meetings “to prepare for the post-subsidy phase, [...] and maintain supply stability in light of the difficult situation the country is facing.”
The ministry has priced a pack of 840 grams (an increase of 40 grams compared to previous packs) bought from bakeries at LL65,000, and LL77,000 for the same pack purchased from stores and supermarkets.
The price of the smaller 400 grams pack will be set at LL40,000 at bakeries, and LL45,000 at stores and supermarkets.
The new prices represent an increase of 18 percent for a pack of 840 grams, previously priced at LL55,000 (for 800 grams), but remains lower than the 50 percent increase for the price of wheat because “the cost of wheat-to-flour processing was not subsidized”, explained Ahmad Hoteit, president of the Mill Owners’ Association.
Wheat will be purchased at the market rate of LL90,000-to-the-dollar, while it was previously purchased at a rate of LL60,000 to the dollar before the subsidies were lifted, added Hoteit. With no plans to resume any World Bank loans, bread prices were already expected to hike up between LL10,000 to LL15,000 since mid-august.
The World Bank had provided Lebanon with an emergency loan of $150 million in May 2022 — later implemented in February 2023 — to maintain bread prices affordable for vulnerable households and keep wheat supply steady following the collapse of the national currency and the rampant shortages (of food, medicine…) across the market at the time.
The Consumer Protection Directorate will be tasked with monitoring the market to ensure compliance with prices and pack weights set by the ministry, concluded the statement.