Lebanon Businessnews News

Delivery of subsidized flour to be halted next week
Bread prices could increase
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Wheat millers will stop delivering subsidized flour starting on Monday May12. Prices of flour delivered to bakeries will reach $433 per ton, unless the Ministry of Economy and Trade (MoET) takes appropriate measures.

The measure taken by millers will lead to an increase in bread prices in mid May.

Millers have been delivering flour at subsidized prices for a week, even though wheat was not supported by MoET. The ministry had asked millers to keep on delivering subsidized flour to bakeries. “Millers do not have subsidized flour anymore, because the MoET did not provide the amounts required for March, April, and May,” said Arslan Sinno, Chairman of the Syndicate of Agri-food Traders.

Sinno said that mill owners cannot bear any additional losses due to the increase in flour prices, especially since the accumulated arrears have reached $4 million.  

The Cabinet cancelled a recent tender to purchase wheat. The Ministry of Agriculture refused to receive a wheat shipment of 30,000 tons for May which did not comply with standards.

Millers receive 18,000 tons of subsidized wheat monthly. The price of subsidized flour is $393 per ton ex factory.

Reported by Rania Ghanem
Date Posted: May 09, 2014
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