Shortages of state-subsidized marraqueta bread in Bolivia are creating an early test for newly elected President Rodrigo Paz, as wheat supplies shrink and costs rise, putting pressure on bakers and frustrating consumers.
The frustration of bakers and shoppers highlights the political risks for Paz, who seeks to undo the subsidy-laden economic model of his socialist predecessors without angering a population accustomed to state support.
Bakers have noted that delays in government-imported flour and other shortages are making it difficult to meet demand for the iconic bread, the price of which has been fixed for 17 years under the previous Socialist government. Bolivia imports about three-quarters of its wheat, mainly from Argentina.
Customers also complained that the marraqueta, which sells for the equivalent of 7 cents, has reduced its weight to 60 grams (2 ounces), down from 100 grams two years ago. Some shoppers stand in long lines for hours.
On Wednesday, the National Confederation of Artisanal Bakers of Bolivia (Conapaabol) announced plans to increase the price of bread to about 11 cents per unit, ending an agreement with the previous government.
You may be interested in: Climate crisis and water shortage: time has run out
Baker Roberto Rengel added that he has not yet received the ingredients promised by the state supplier for September. “The subsidy is killing us,” he said.
Some sellers have turned to more expensive alternatives, such as cheese-filled breads called sarnitas, which offer higher profit margins. Others have stopped selling bread altogether.
Years of state-led policies and nationalization under the previous leftist government discouraged foreign investment and strained public finances in Bolivia, a major producer of natural gas and grain. The country is currently facing one of its worst economic crises in decades.
State food agency EMAPA suspended flour supplies in September because the government could not pay suppliers on time.
Paz, who took office on Nov. 8, has pledged to reform subsidies covering energy, transportation and basic goods, but has so far avoided sweeping changes. Economy Minister José Gabriel Espinoza told Reuters this week that the government is considering cutting some subsidies, such as diesel, but did not provide a time frame or details on other key goods.
Bolivian economist Gonzalo Chávez of the Bolivian Catholic University said eliminating subsidies is technically complex and politically risky.
“Subsidies create distortions and erroneous price signals, leading people to believe that cheap bread and cheap fuel are rights,” he said.
Still, some sellers fear price increases on other products if bread subsidies are reduced. “If bread goes up, everything goes up,” said street vendor Natividad Zabala.
With information from Reuters
Follow us on Google News to always stay informed
