The recurring bread crisis in Libya evokes memories of the Muammar Gaddafi era, when “forty loaves of bread” (weighing 50 grams each) cost one dinar, equivalent to about 70 US cents at the dollar’s exchange rate at the time. Today, with the current dollar exchange rate, 70 cents buys only about 18 loaves, illustrating the extent of the Libyan dinar’s purchasing power decline.
Warnings of Price Increases
Bokhreis Mohammed, the head of the bakers’ syndicate in Libya, has warned of a potential crisis in bread prices due to rising flour costs, predicting that the price of a single loaf could reach half a dinar reflecting drop in the dinar’s value, from 40 loaves for one dinar to just two loaves.
Bokhreis explained that the syndicate has submitted a letter to the Minister of Economy and the Prime Minister of the Government of National Unity, Abdul Hamid Dabaibeh, demanding support for bakeries to ensure food security for citizens.
Challenges in Providing Flour
Libya faces significant challenges in securing flour supplies, as it imports about 90% of its wheat, amid a decline in local agricultural projects. Russia and Ukraine, both experiencing war, are among the most prominent sources of wheat for the Libyan market.
Libyans consume about 145 kilograms of flour per person annually, while a family of five consumes about 15 loaves daily. Libya imports about 1.3 million tons of wheat annually to meet local demand.
Subsidies for basic commodities, including flour, were abolished in 2015, which amounted to between $2 and $3 billion annually.
Government Silence
The Government of National Unity, headed by Abdul Hamid Dabaibeh, has not yet commented on the bread crisis, despite commenting on other crises related to government spending, the dollar, and the dinar’s decline.
