Bolivia’s state-subsidised marraqueta bread roll is beginning to serve as an early test of new President Rodrigo Paz’s administration, which is trying to recalibrate the country away from a subsidy-heavy economic model.After the price of the country’s iconic roll was set 17 years ago, bakers have found it ever more challenging to supply the bread, as dwindling wheat supplies and rising costs squeeze margins.Bolivian bakers say they are struggling to keep up with demand for the marraqueta, the country’s staple bread, as government-imported flour arrives late and broader shortages persist.Bolivia depends on imports for roughly three-quarters of its wheat, most of it sourced from Argentina, leaving the supply highly vulnerable to disruptions. Bakers report that the scarcity has also forced them to reduce the size of the bread itself.Customers say a marraqueta now weighs around 60 grams — down from about 100 grams two years ago — and sells for the equivalent of 7 US cents. The shrinkage and shortages have triggered long queues, with some people waiting hours in hopes of securing just a few pieces.Political risks for a new governmentThe dispute over bread supplies underscores the political risks facing President Paz, who took office on November 8. He has pledged to reform subsidies on energy, transportation and basic goods — measures long used by his socialist predecessors to stabilise prices but which placed heavy strain on public finances.So far, Paz has moved cautiously and avoided major shifts. But growing frustration among bakers and consumers highlights the challenge ahead: how to unwind entrenched subsidies without provoking backlash from a population accustomed to state support.Bolivia’s National Confederation of Artisan Bakers (Conapaabol) intensified the pressure on Wednesday, announcing plans to raise bread prices to roughly 11 US cents per unit. The move would effectively end a long-standing agreement with the previous administration. The group cited delays from suppliers and rising costs as the key reasons for seeking an increase.Baker Roberto Rengel said to Reuters that he has yet to get the promised ingredients from the state supplier for September. “The subsidy is killing us,” he remarked, reflecting the belief of some producers that fixed prices no longer cover the cost of production.A legacy of State-led policiesYears of nationalisation and state-centred economic management under the previous Marxist government have exacerbated Bolivia’s current fiscal problems. While the country is a major producer of natural gas and wheat, limited foreign investment and growing financial pressures have resulted in one of its most severe economic crises in decades.The burden is visible in the government’s capacity to continue food subsidies.In September, the state-run food agency EMAPA froze flour supply because it couldn’t pay suppliers on schedule, causing shortages in bakeries across the country.Economy Minister Jose Gabriel Espinoza announced this week that the government was considering cutting some subsidies, including those for diesel, but no date or specifics were provided for other crucial items.The post Bolivia’s iconic marraqueta bread shortage tests President Paz’s reform agenda appeared first on InvezzBolivia’s state-subsidised marraqueta bread roll is beginning to serve as an early test of new President Rodrigo Paz’s administration, which is trying to recalibrate the country away from a subsidy-heavy economic model.After the price of the country’s iconic roll was set 17 years ago, bakers have found it ever more challenging to supply the bread, as dwindling wheat supplies and rising costs squeeze margins.Bolivian bakers say they are struggling to keep up with demand for the marraqueta, the country’s staple bread, as government-imported flour arrives late and broader shortages persist.Bolivia depends on imports for roughly three-quarters of its wheat, most of it sourced from Argentina, leaving the supply highly vulnerable to disruptions. Bakers report that the scarcity has also forced them to reduce the size of the bread itself.Customers say a marraqueta now weighs around 60 grams — down from about 100 grams two years ago — and sells for the equivalent of 7 US cents. The shrinkage and shortages have triggered long queues, with some people waiting hours in hopes of securing just a few pieces.Political risks for a new governmentThe dispute over bread supplies underscores the political risks facing President Paz, who took office on November 8. He has pledged to reform subsidies on energy, transportation and basic goods — measures long used by his socialist predecessors to stabilise prices but which placed heavy strain on public finances.So far, Paz has moved cautiously and avoided major shifts. But growing frustration among bakers and consumers highlights the challenge ahead: how to unwind entrenched subsidies without provoking backlash from a population accustomed to state support.Bolivia’s National Confederation of Artisan Bakers (Conapaabol) intensified the pressure on Wednesday, announcing plans to raise bread prices to roughly 11 US cents per unit. The move would effectively end a long-standing agreement with the previous administration. The group cited delays from suppliers and rising costs as the key reasons for seeking an increase.Baker Roberto Rengel said to Reuters that he has yet to get the promised ingredients from the state supplier for September. “The subsidy is killing us,” he remarked, reflecting the belief of some producers that fixed prices no longer cover the cost of production.A legacy of State-led policiesYears of nationalisation and state-centred economic management under the previous Marxist government have exacerbated Bolivia’s current fiscal problems. While the country is a major producer of natural gas and wheat, limited foreign investment and growing financial pressures have resulted in one of its most severe economic crises in decades.The burden is visible in the government’s capacity to continue food subsidies.In September, the state-run food agency EMAPA froze flour supply because it couldn’t pay suppliers on schedule, causing shortages in bakeries across the country.Economy Minister Jose Gabriel Espinoza announced this week that the government was considering cutting some subsidies, including those for diesel, but no date or specifics were provided for other crucial items.The post Bolivia’s iconic marraqueta bread shortage tests President Paz’s reform agenda appeared first on Invezz