In Tunisia, as in other North African countries, the State controls the price of several basic foodstuffs. However, this support mechanism for the most vulnerable populations is increasingly criticized because of the financial burden it represents.
In Tunisia, an overhaul of the food subsidy system is necessary in order to achieve greater efficiency in the allocation of state resources. This is indicated by the World Bank in its latest economic situation bulletin on the country, published on 7 September.
Entitled “Managing the crisis in times of uncertainty”, the report paints a mixed picture of food price control. This public mechanism subsidizes the consumer prices of several basic foodstuffs, including wheat products (pasta, bread and semolina), vegetable oils and milk, through a General Compensation Fund (CGC) .
If, according to the World Bank, government support has had a positive effect for consumers by protecting the purchasing power of the most disadvantaged social strata, its main consequence is to weaken several sectors and widen the budget deficit. of State.
In the case of wheat, for example, the low prices enjoyed by consumers have penalized farmers’ incomes and limited private investment in increased production as well as in processing.
Moreover, underlines the financial institution, the massive subsidies have led to overconsumption and resulted in widespread waste. Thus, in the land of Jasmine, this latest scourge costs nearly 580 million dinars ($180 million) every year. At the top of the most affected food products, bread with nearly 900,000 loaves of bread that are wasted every day, pasta and fruits and vegetables.
Faced with this prejudicial situation for public finances, the World Bank suggests a change in policy which would consist of “payment of compensatory monetary allowances to vulnerable households ” instead of food price support.
According to the Breton Woods institution, this strategy would “improve the efficiency of the system, reduce budgetary and import costs and strengthen food security in the face of future shocks”.
As a reminder, Tunisia is one of the countries with the highest per capita wheat consumption in the world with 268 kg per year.
