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Price of Bread Embarrasses Algerian Authorities

Algeria’s bakers are demanding that the government raise bread prices in the country as they struggle to turn a profit, writes Kaci Racelma.

An Algerian bread vendor pushes his cart during shopping hours in the popular Kasbah neighborhood December 15. The start of Ramadan is always marked by a steep raise in prices. [Security has been tightened in major cities to prevent Islamic guerrilla attacks who consider Ramadan an auspicious period in their struggle to set up a purist state.  ] - RTXJDR1
An Algerian bread vendor pushes his cart, Dec. 15, 2005 — REUTERS/Zohra Bensemra

While the Algerian government continues with its subsidy policy on general consumer goods, such as milk and bread, bakers said they have been working at a loss. They stressed that the cost of bread is about 11.72 Algerian dinars, equivalent to $1.32.

This was the reason behind the one-day strike that was held last week at the call of the National Commission for Bakers. Bakers have been demanding a profit margin of 20% and an increase in the price of bread.

They have been demanding that the country’s authorities raise their profit margin. This represents a real dilemma for the government, which continues to ignore their complaints, pushing them to intensify their actions. This situation would affect consumers, who are likely to rise against the authorities as well.

Nevertheless, yielding to their request by raising the price of bread would also tighten the grip on the socio-economic condition of the people, who are not likely to kowtow to the government. Algerians have been already worn out by the high cost of living; they cannot afford an increase in the price of bread, which could pose a serious threat to social peace.

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