Bolivia’s Bread Crisis: A Struggle for Sustenance Amid Economic Turmoil

LA PAZ, Bolivia (AP) — Juan de Dios Castillo, drenched in flour and sweat, pulled a crisp roll from the cooling rack and weighed it on an old metal scale: 60 grams (2 ounces). This is significantly less than what it used to be just two years ago, highlighting a pressing crisis in the country’s staple food.

While shoppers in more affluent nations scrutinize the contents of their chip bags, Bolivians find themselves facing a much more direct challenge with their bread. There is little doubt that they are paying the government-fixed price for loaves that are not only smaller in size but also of lesser quality.

The Shrinking Loaf: A Sign of Economic Strain

Once upon a time, entering a government-subsidized bakery like Castillo’s would yield a 100-gram (3.5-ounce) roll for 50 centavos (7 U.S. cents). Yet, amidst a cash crunch affecting flour imports and spiking inflation, bakers have drastically reduced the size of their bread. In early 2023, rolls shrank to 80 grams, then to 70, and presently, they stand at a mere 60 grams.

“It’s like eating a bit of air, a Communion wafer; it doesn’t fill you up anymore,” lamented Rosario Manuelo Chura, 40, as she dipped the thin crust into her coffee in La Paz.

Castillo is equally disheartened. Struggling to sell his bread below market value, he barely manages to break even. “This situation is not sustainable,” he exclaimed, slamming the oven door in frustration.

The Intersection of Bread and Politics

As Bolivia braces for its presidential election this Sunday, the plight of this iconic “pan de batalla” — or “battle bread” — reveals deep-rooted issues within the nation’s economy. Hailing from the Chaco War rations against Paraguay in the 1930s, Bolivia’s battle bread symbolizes a state grappling with a historical economic model established by ex-leader Evo Morales, now facing the worst economic crisis in four decades.

Right-wing contenders, businessman Samuel Doria Medina and former President Jorge “Tuto” Quiroga, have controversially suggested eliminating the politically charged subsidies underpinning Bolivia’s social safety net. “I say this openly, I’ll remove subsidies because they’re the greatest absurdity,” Doria Medina declared in an interview with The Associated Press.

The Methodist Bread Shortage

The battle for bread intensifies as Bolivia experiences a vanishing act of hard currency needed for wheat imports, producing less than 25% of its consumption needs. As a result, the government struggles to manage a growing backlog of imports, leading to dwindling inventories of subsidized flour and the resurgence of bread lines across La Paz.

Simultaneously, a scarcity of U.S. dollars also affects diesel fuel imports, compounding the problems faced by an already fuel-dependent agricultural sector. Diesel is essential for irrigation and transportation of goods, further raising food prices.

Inflation’s Impact on the Daily Bread

Two years prior, Bolivia boasted a lower annual inflation rate than Germany; today, it holds one of the highest rates in the region, with the government reporting a 25% rise in consumer prices in July compared to the previous year. Remarkably, the price of bread has remained unchanged for 17 years.

Bolivia’s reliance on imported wheat from Argentina adds to the precarious situation, especially as prices surge under the libertarian policies of President Javier Milei. The government-subsidized grain agency, EMAPA, allocates flour at a fixed price to bakers, compelling them to sell battle bread for 50 centavos a loaf—merely a fifth of its market cost, forcing bakers into dire financial straits.

A Call to Action

Amidst mounting frustrations, bakers recently staged a 24-hour strike demanding the right to sell their bread at market prices. Historically, increases in bread prices signal catastrophic consequences, prompting fears of social unrest reminiscent of past upheavals in history.

“When the price of battle bread goes up, that’s the day everything collapses,” said Jacobo Choque, 40, an accountant waiting to purchase bread from a non-subsidized bakery. Outside, an open-air market bustles as customers scramble for scarce battle bread.

“We used to have breakfast with one roll, but now we need two to feel full,” noted Carmen Muñoz, 65, expressing frustration at the situation as she waited in line. “Let’s not forget that socialism brought us here.”

A System at the Brink

Since 2007, when Morales first harnessed natural gas revenues to fund essential subsidies, the economic model has faltered due to plummeting gas production. The financial burden of these subsidies grew overwhelmingly heavy, culminating in over 4.2% of the gross domestic product spent on food and fuel subsidies last year.

With delayed payments to suppliers and logistical challenges due to fuel shortages, EMAPA’s flour deliveries have been erratic, leaving bakeries scrambling for ingredients. Many bakers fear bankruptcy as inflation continues to rise and production quality declines.

“Rather than helping, subsidies are hurting us,” Castillo stated emphatically. Some industry insiders allege that EMAPA favors certain bakers over others, impacting the balance of fairness in distribution. Meanwhile, EMAPA continues to investigate allegations of corruption concerning the subsidized flour.

“In all my 30 years at this market, this is the most stressful,” opined Raquel de Quino, a 60-year-old bread vendor facing irate customers puzzled by the shrinking loaves and inflation-induced shortages.

As she grapples with the frustrations of her clientele, she mused, “Let’s pray to God that under the next government, there will be bread for our children.”