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Rising prices and shortages in Algeria: The Senate accuses Tunisia

4 months ago
in World
Rising prices and shortages in Algeria: The Senate accuses Tunisia
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Algerian authorities have blamed Tunisia for the problems of food shortages and rising prices in the country. In reality, the source of this phenomenon is the Algerian policy of blocking imports and the new finance law which came into force on December 31, 2021.

After long denying the problem of food (but also medicine) shortages in Algerian cities, and then accusing farmers of being the source of price speculation for potatoes and other fresh produce, the Algerian authorities have found this time an explanation.

The Algerian Senate finally recognized the existence of a problem when the declarations of the officials, in particular in the interventions of the Algerian president Abdelmadjid Tebboune, denied for months any shortage.

In a recent speech, the Algerian head of state accused some Algerians of wanting to criticize everything, claiming that they “still await disaster”.

“All shame drunk, a newspaper put empty shelves on the front page,” said the president before adding that it is impossible to talk about empty shelves in Algeria.

The Algerians have however repeatedly denounced the accentuation of the crisis which has been felt above all at the level of basic necessities, namely bread, frying oil, potatoes, flour, semolina , or even canned milk, the prices of which have soared in the face of a shortage of stocks.

On the prices of basic products having climbed, the baguette went from 10 to 15 dinars, milk went from 100 dinars per unit to 130 dinars per box, not to mention the shortages of vegetables and fruits that the Algerians produce but can no longer afford to buy.

Taken by the throat and no longer making a profit margin, the bakers in Tizi Ouzou have announced their intention to strike.

Moreover, the country recorded the highest inflation rate in the region in 2021 at 9.2% and Algerian experts estimate that it will rise to double digits in 2022, according to forecasts.

However, for the Algerian authorities, the problem does not come from within. As usual, the Algerian power has put forward the theory of the outside hand to clear itself of all responsibility.

While diplomatic relations with Morocco have been broken since August and commercial relations have stalled between the two countries, Algeria’s traditional enemy could not be accused this time, and as a result the Algerian Senate fell back on Tunisia, accusing it of being responsible for smuggling and therefore price inflation.

A study presented to the governors of 14 border regions, in the south and east of the country, estimates that it is above all the eastern border that is the most active in the smuggling phenomenon, thus causing the loss of 30% of products Algerians, hence the current shortages in the country.

The Algerian elected officials thus believe that the smuggling of Algerian products in Tunisia is a real threat to food security in Algeria and also supported the policy of ending subsidies for basic products decided by the Algerian government in December, judging that in this way , they will no longer benefit Tunisia.

In reality, the phenomenon of smuggling between Algeria and Tunisia is not essentially linked to food products, but above all to oil, and the products which are in short supply in Algerian shops are mainly imported products such as milk or even oil and subsidized by the State.

On December 31, Algerian President Abdelmadjid Tebboune signed the new 2022 finance law which put an end to subsidies on basic products (bread, semolina, sugar, oil, water, electricity, gas, etc.) and it is this deal that has had an impact on Algerian households so quickly since January.

With the end of subsidies in Algeria, which also affect social benefits that allow the population to benefit from education, free health care, and housing at reduced prices, the daily life of Algerians risks being disrupted, and in exchange, the Algerian State will save 10% of its GDP.

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Tags: Abdelmadjid TebbouneAlgeriaFinance law 2022Price increaseShortagesSmugglingTunisia
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