Bakeries suspend strike

One proposed solution is a subsidy of $47 for each ton of flour

The Federation of Unions of Mills and Bakeries has suspended a strike it scheduled for Thursday (April 19) following talks with the Minister of Economy and Trade, Nicolas Nahas. 

The federation was planning an open-ended strike to protest the increase in the price of raw materials used in bread production.

According to Nahas, the meeting with the federation came up with three options to resolve the crisis. 

The first option is to apply a subsidy of around $47 per ton of flour. Under this plan, bakeries would pay just $293 for each ton of wheat flour instead of the $340 they pay now.

The second option proposed is to raise the price of a packet of flat bread to LL2,000 ($1.3) while increasing its weight to 1.25 kilos from one kilo.

The third proposed solution is to remove controls on the price of white bread, which is currently capped at $1 for a one-kilo packet of flat white bread.

Nahas said that the Cabinet will vote for one of the three options during its Friday (April 20) session. He also said that the ministry will form a committee tasked with preparing a study of the impact the increase in fuel prices has had on production costs of bread.

Reported by Hanadi Chami