Tunisia - Low domestic grain producdtion and dysfunctions in the distribution of this commodity to flour mills are structural factors that have led to the shortage of bread in Tunisia, according to the organisation for the fight against rent-seeking economy (ALERT).

In a recent note, the organisation deplored the low national production of grain which struggles to meet consumption needs, in addition to the hegemony of certain flour mills belonging to the employers' organisation over the supply market.

The distribution of subsidised flour is also dysfunctional, with certain bakeries taking the lion's share.

According to ALERT, these structural factors have been exacerbated by other economic factors that have accelerated the decline of the bread industry in Tunisia.

Among these cyclical factors, the organisation mentions the interruption of durum wheat imports, which fell by 30% in the first five months of 2023 compared to the same period in 2022, due to a lack of liquidity and the inability of the grain agency to finance market needs.

In addition, the difficult climatic situation in Tunisia, characterised by severe drought, has had a serious impact on durum wheat production, which stands at one million quintals, or just 19% of market requirements.

On the other hand, the organisation believes that the upward revision of semolina prices (59 dinars per quintal instead of 38 dinars per quintal) is responsible for the inability of classified and unclassified bakeries to supply 190-millime baguettes, leading to a shortage of this product.

Political authorities primarily responsible for the shortage.

For ALERT, "the political authorities remain primarily responsible for this shortage", believing that the removal of subsidies in the absence of supply and without an increase in bread prices is a "policy orchestrated by the state".

Subsidies allocated to basic products fell by 90% in the first quarter of 2022/2023, from TND 400 million to TND 42.9 million.

The organisation added that the stage grain agency has not received any subsidies for a year, which has prevented it from meeting market needs.

On the call by the President of the Republic to take urgent measures to put an end to the classification of bakeries, ALERT pointed out that this could lead to a drop in demand and endless queues in front of bakeries.

According to the organisation, this measure will only serve the interests of authorised bakeries, adding that it is part of a policy aimed at the "disguised abolition" of commodity subsidies.

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