"Net Boys" opens the bread price rise file in a goat. Reasons and solutions between regression of power and rejection of furnaces

 

“Sultan Al-Sharabi” used to wake up early, at five o’clock after the dawn prayer, to wander the streets of the besieged city of Taiz, passing by the places he often visited, to search for work that would extract from him what would help him support his family, which consists of a wife and three children. They live with him now.

Sultan lives on an unstable source of income, moving between construction, plumbing, and other services that he is good at. He usually returns to his small house before sunset carrying the fruits of his early awakening, and at other times he returns carrying disappointment, in a city where the price of “bread” has recently risen, adding another burden to his shoulders.

In previous times, Sultan Al-Sharabi says that he was forced to send one of his sons early to work in the qat market, while he sent his other son to join the ranks of the army, before they finished their studies. This is, according to his assertion, “in order to meet other life requirements,” especially in light of the war and siege that the city is going through, and the accompanying repercussions, most notably the continued loss of the local currency’s purchasing value.

Poor meal between power and merchant

 Bread has always been a permanent Yemeni meal, which he cannot do without in his various daily meals. This is not only because it is the main meal, but also because it is the least expensive meal in his life, which he can afford in any case. Even with the constant rise in prices, “bread” remained considered a permanent meal for the poor, as many could be satisfied with it when they were unable to provide other foods due to their high price.

In mid-May, the Governor of Taiz Governorate, Nabil Shamsan, issued a decision to raise the prices of bread and roti, by an increase of 10 riyals per loaf. According to the preamble of the decision, this came “based on the minutes signed on April 30, 2024 between the Director General of the Office of Industry and Trade and the President of the Bakeries Association.”

Yemen Shabab Net learned that an association had previously put pressure on the Industry Office and threatened to close bakeries unless the prices of bread and roti were raised quickly, due to the rise in flour prices.

 

The decision issued by the governorate sparked a wave of widespread angry popular responses, adopted by activists on social media, which made the governor decide to later retract his previous decision to lift, and issue new directives on May 25, canceling the previous decision, according to what was published by the governorate’s media office, which confirmed that The governor directed the director of the Office of Industry and Trade to form a committee to study the decision and determine the price in a way that is commensurate with the interest of the citizen and the production costs of bakeries at the same time.

However, bakeries are still selling bread at the new price, and refuse to return to its previous price, ignoring the governorate’s directives. Activists on social media even accuse bakeries of reducing the size of a single plate of bread and roti, and they also refuse to use scales to weigh the size of bread in front of customers..!!

Warnings...and red lines

Before the recent increase, a Yemeni family, consisting of five members, spent on average between 1,000-1,500 riyals ($0.55-0.85) the value of “bread” in the sum of its three main meals a day.

Recently, after his prices increased, Sultan Al-Sharabi confirmed to Yemen Shabab Net that he now spends the equivalent of 2,500 riyals ($1.5), as a minimum, on buying bread (or roti) daily, as he confirmed to Yemen Shabab Net. . Which means that the total amount he buys each month may deprive him of half of the income he receives from his work - that is, if he is lucky enough to get a job throughout the month.

This is what made him warn, saying: “A further rise in bread prices is unlikely,” adding, “It will be the fate of many people to reduce the rate of bread consumption, and be content with the minimum amount of it, given the proven inability to keep up with the new prices.”

The journalist interested in economic affairs, “Nabil Al-Sharabi,” said in his interview with “Yemen Shabab Net”: The decision issued regarding the increase in the price of bread is a targeting of the remaining source of life for the residents of the city, who, he said, depend entirely or almost entirely on purchasing bread from bakeries as the main material for their daily meals.

 

 

Causes and complications

 There are various factors that have recently led to an increase in the price of “bread” in a number of liberated governorates, such as: Taiz, Aden, Lahj, and others. The most prominent of these factors are: the continuing economic deterioration, the continued weakness of the local currency’s purchasing power against foreign currencies, especially with the recent cessation of oil and gas exports, and the government’s inability to provide alternatives to providing foreign currency.

But with regard to the city of Taiz in particular, just as the repercussions of the rise in the price of “bread” are more disastrous due to the factors of poverty, job loss, weak purchasing power, capital fears and the reluctance of investors to expand their investments; However, the reasons for this increase in prices here increase due to the siege imposed on the city, and the long distances and ruggedness of the alternative roads.

Economic journalist Wafiq Saleh attributed the rise in bread prices to the decline in the value of the local currency and the constant fluctuation in exchange rates. He believes that this collapse in the value of the currency, and the ongoing turmoil in exchange rates, directly affects the prices of goods, foodstuffs, and all services, and leads to their prices rising with every cycle of collapse of the national currency.

Saleh told "Yemen Shabab Net" that the rise in service prices, due to inflation and the deterioration of the living situation, leads to an increase in the prices of all tools necessary for the production of bread and roti, in addition to an increase in the price of fuel, which is an essential material for production in bakeries and ovens, and all of these factors interact with each other, leading to To this rise in the prices of bread and roti.

The economic journalist also confirms that the siege imposed on Taiz contributes to the rise in the prices of commodities, including bread, through its effect on the rise in transportation costs, which in turn affects the consumer by imposing additional burdens on the goods. However, he believes that the siege factor remains an additional factor and not the main one. .

 

 

Solutions and suggestions

Regarding the solutions proposed in this regard, the Director of the Office of Industry and Trade in Taiz, Abdul Rahman Al-Qulaiah, believes that the solutions to this issue must be comprehensive, most important of which is stopping the deterioration of the local currency.

Al-Qulaiah added to “Yemen Shabab Net” that solving the security problem in the Red Sea will open the door to competition for importing flour, wheat and other materials, confirming, according to his statement, that this will solve the problem, in addition to the state bearing the responsibility of providing food security stocks, fuel support, and maintaining the stability of economic conditions.

In the same vein, journalist Wafiq Saleh emphasizes that improving commodity prices is closely linked to improving the value of the local currency and stabilizing the living and economic situation.

While economic journalist Nabil Al-Sharabi believes that returning citizens mainly to preparing bread at home, and gradually eliminating the purchase of bread from bakeries, may ease the pressure on bakeries and contribute to the return of prices to normal.

Therefore, he advises the citizen to “replace the purchase of bread by purchasing flour, wheat, and various corn grains, and to prepare meals and home-baked goods that will last for days without spoiling,” considering this to be something suitable for those without income, taking into account that this solution may not be possible for everyone, and it is sufficient for a segment to practice it. big.

 

The ovens association refuses

As we mentioned earlier; Widespread public pressure, from activists and media professionals on social media, led to the governor of the governorate issuing directives to cancel his previous decision on the new price, and to form a committee to study prices and make the appropriate decision without harming the citizen and sellers. In light of this, the Director of the Office of Industry and Trade issued a circular announcing the retraction of the decision and returning the matter to the committee to study and determine the appropriate price.

 

However, the “Ovens and Bakeries Association” in the city of Taiz did not respond, as it still refuses to return to the old price today and wait for the committee’s decision, under the pretext that this will lead to the bankruptcy of a number of the owners of these bakeries.

The Monday before last, the association carried out a comprehensive strike by bakeries and ovens to put pressure on the local authority and citizens to accept the new pricing. Two days after the strike, it returned to selling bread at the new price, although it was temporarily canceled until the committee decided on the matter.

The head of the Bakeries and Ovens Association, Ismail Abdel Fattah, confirmed to Yemen Shabab Net: The pricing is now in accordance with the recent decision of the local authority, which stipulates that the pricing initially issued by the Office of Trade and Industry be used, which is 60 riyals as the price for a roti - weighing 50 grams.

But he pointed out, at the same time, that the association and citizens are awaiting the results of the committee assigned by the governor of the governorate to conduct a careful study on this matter and set a pricing that suits citizens and does not harm the owners of bakeries and ovens.

This comes as the Director of the Office of Industry and Trade, Abdul Rahman Al-Qulaiah, explained to “Yemen Shabab Net” that the work of the aforementioned committee is still ongoing, and within the framework of implementation alongside the relevant authorities, indicating that it met yesterday, Wednesday, with a number of authorities and institutions, including the Foundation. Economy to study the possibility of importing flour at a cheaper price, adding that next Saturday a meeting will be held to present the committee’s findings in this regard.

Al-Qulaya pointed out that exchange rate fluctuations represent one of the obstacles that prevent the committee from adopting a specific price and announcing it, in addition to the repercussions of the security events in the Red Sea, which affected the import movement and commercial activity as a whole.

Conclusion

In normal conditions in various countries of the world, which witness political and economic stability and do not suffer from wars or humanitarian crises; The high price of bread is a challenge facing both the state and society. This is because bread represents the primary source of food security, in light of which indicators of social stability fluctuate.

When this increase occurs in a region or governorate that is already experiencing a severe humanitarian crisis and food insecurity, it not only heralds the collapse of the economic situation; Rather, it makes citizens deeply aware of the repercussions of this collapse, in a practical way.