Bread-Short Tunisia to Restore Flour Supply to Some Bakeries

People queue in front of a bakery selling subsidized bread in Tunis' Halfaouine district, on August 19, 2023. (AFP)
People queue in front of a bakery selling subsidized bread in Tunis' Halfaouine district, on August 19, 2023. (AFP)
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Bread-Short Tunisia to Restore Flour Supply to Some Bakeries

People queue in front of a bakery selling subsidized bread in Tunis' Halfaouine district, on August 19, 2023. (AFP)
People queue in front of a bakery selling subsidized bread in Tunis' Halfaouine district, on August 19, 2023. (AFP)

Tunisia will again supply flour to more than 1,000 non-subsidized bakeries in the North African country after most of them ceased operating, government and industry officials said on Sunday.

The deal could help ease a bread shortage that has worsened over the past two weeks.

Since the beginning of August, European-style bakeries selling baguettes in the formerly French-ruled country had been prevented from accessing their quota of subsidized flour, after President Kais Saied said there should be "one type of bread for all Tunisians".

Days later those same bakeries also stopped receiving non-subsidized flour and semolina from the state, which controls the supply of all such essential goods in the country.

Known as "modern bakeries", the shops sell at a higher price and also offer pastries and other breads. More than 3,700 other bakeries sell only subsidized baguettes at a cost of 190 Tunisian millimes (around $0.07 cents), a price unchanged since 1984.

"It has been decided to resume the supply of flour and semolina to the non-subsidized bakers from August 19," after which they committed to "respect the laws on the production and sale of bread", the commerce ministry said in a statement.

Economists attribute the bread shortage partly to speculation but, more broadly, to the lack of cereals. Tunisia's debt is around 80 percent of gross domestic product and the country lacks liquidity. It is unable to buy enough grain on global markets, economists say.

Around 200 bakers in the capital Tunis held a sit-in after the subsidy cut, and then authorities also disrupted the supply of regular flour.

Another such protest planned for Monday in Tunis has been cancelled after the government's latest announcement, Salem Badri, president of the Association of Modern Bakeries in the coastal city of Sfax, told AFP.

Ninety percent of the 1,443 association members, which employed almost 20,000 people, "had to close their doors" as a result of the earlier decision, Badri said, which made bread queues even longer at the other, state-supported outlets.

He said that, beginning Monday, discussions would continue with authorities to allow the modern bakeries to resume production of subsidized bread, but "on the basis of criteria set by President Kais Saied".

In the early 1980s, riots over bread killed a total of 150 people in Tunisia.



Bitcoin Drops to 11-day Low amid Tech Selloff

FILE PHOTO: Sparks strike representation of cryptocurrency Bitcoin in this illustration taken November 24, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Sparks strike representation of cryptocurrency Bitcoin in this illustration taken November 24, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
TT

Bitcoin Drops to 11-day Low amid Tech Selloff

FILE PHOTO: Sparks strike representation of cryptocurrency Bitcoin in this illustration taken November 24, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Sparks strike representation of cryptocurrency Bitcoin in this illustration taken November 24, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Bitcoin fell below $100,000 on Monday, hitting its lowest in 11 days, in a move analysts attributed to a wave of caution after the surging popularity of a Chinese artificial intelligence model sparked a selloff in Western AI-related stocks.

The world's biggest cryptocurrency struggled to make gains last week, as a rally that had seen it break above $100,000 after US President Donald Trump's election ran out of steam, Reuters reported.

At 1156 GMT, bitcoin was at $98,852.17, down around 6% on the day, having fallen sharply in early trading to hit its lowest since Jan. 16.

Technology stocks plunged, as traders worried that Chinese AI startup DeepSeek could threaten Western companies' dominance of the sector, in a move some called AI's "Sputnik moment", referring to the former Soviet Union's launch of a satellite that marked the start of the space race in the late 1950s.

Bitcoin's losses are "seemingly driven by some risk-off sentiment circulating the markets currently due to DeepSeek," wrote eToro analyst Simon Peters.

Geoffrey Kendrick, global head of digital asset research at Standard Chartered, said a decline in Nasdaq futures had hurt crypto markets, but that disappointment over the Trump administration's announcement about a cryptocurrency stockpile had put digital assets more at risk of a sharp selloff.

Crypto failed to feature in Trump's day-one announcements after taking office last week, leaving some investors disappointed. In an executive order on Thursday, Trump created a working group to draft new crypto rules and explore a crypto stockpile, while the Securities and Exchange Commission (SEC) spiked accounting guidance that the industry said had stymied crypto adoption.

The prospect of interest rates staying higher for longer also hurt riskier assets, said Thomas Puech, CEO of digital asset hedge fund Indigo.

US Federal Reserve policymakers meet this week and are expected to keep interest rates on hold.