Bolivia's Marraqueta Crisis: A Political and Economic Turning Point

Bolivia faces bread shortages and price hikes as newly elected President Rodrigo Paz navigates subsidy reform. The marraqueta bread roll shortage highlights political risks, consumer frustrations, and economic challenges, with bakers grappling with rising costs and wheat supply disruptions, crucially impacting Paz's plans to adjust Bolivia's socialist economic model.

Bolivia is grappling with a shortage of its iconic marraqueta bread roll, creating a significant challenge for newly elected President Rodrigo Paz. The scarcity is primarily driven by dwindling wheat supplies and escalating costs, placing pressure on bakers and causing frustration among consumers.

The price of the marraqueta has been fixed for 17 years under the previous socialist government, which heavily subsidized basic goods. However, bakers struggle with delays in government-imported flour and other shortages, making it difficult to meet production demands. Bolivia imports approximately three-quarters of its wheat, mainly from neighboring Argentina.

Facing one of its worst economic crises in recent decades, Bolivia is navigating the consequences of years of state-led policies and nationalization under the previous leftist government. While President Paz has pledged to reform subsidies covering energy, transport, and essential goods, the path forward remains fraught with challenges and political risks.

(With inputs from agencies.)