Bolivia faces marraqueta bread shortage
Rising costs and supply gaps shrink Bolivia’s staple bread supply
Bolivia’s iconic state-subsidized bread roll, the marraqueta, is vanishing from bakery shelves as rising costs and falling wheat and flour supplies squeeze producers of the staple. Bakers across La Paz report delayed government flour imports and other shortages that make it hard to meet demand for a product whose retail price was fixed for 17 years under the previous socialist administration. Many rolls have also shrunk from about 100 grams to roughly 60 grams, while some customers wait in long queues or find the marraqueta unavailable.
Bolivia imports about three-quarters of its wheat, mainly from Argentina, and state-run food agency EMAPA halted flour deliveries in September after the government failed to pay foreign suppliers on time. Dozens of subsidised bakeries have reduced production, switched to higher-margin items such as cheese-filled buns, or stopped selling the roll altogether. Bakers’ groups said they plan to raise bread prices to roughly 11 U.S. cents per unit, ending the long-standing price agreement with the prior government.
The shortages and “shrinkflation” reflect deeper economic stress: depleted currency reserves, rising inflation and a broader collapse in public finances after years of state-led policies and nationalisations that discouraged foreign investment. The crisis presents an early, visible test for newly elected centrist President Rodrigo Paz, who has pledged to unwind subsidy-heavy policies for energy, transport and basic goods but has so far avoided sweeping cuts. Economy Minister Jose Gabriel Espinoza indicated some subsidies, including diesel, are being considered for reduction, but provided no timetable or details for other key goods.
Economists warn subsidy reform is fiscally necessary but politically fraught in a country where subsidised bread is central to household budgets. Public anger over price rises or reduced access could provoke unrest, they say. For now, the marraqueta’s disappearance underscores the balancing act facing the administration: pursue fiscal stabilization while preventing immediate hardship for vulnerable families dependent on the low-cost staple.
