BFMC warns wheat bran black market doubles prices to BD6 per bag

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: ashen@newsobahrain.com

Subsidized wheat bran, locally known as “shwar,” allocated by the Bahrain Flour Mills Company (BFMC) to livestock farmers, is not reaching its intended recipients.

Instead, a network of individuals and businesses is exploiting the government support system for profit, illegally obtaining and reselling the subsidized bran at inflated prices, well above the official rates.

The BFMC has confirmed this, noting that it severely disrupts the subsidy’s intended purpose.

In a statement released last week, the BFMC highlighted the issue of third-party sellers manipulating the market. Farmers also confirm black market sellers are charging them up to BD 6 per bag, more than double the official rate.

The BFMC is urging authorities to take swift action, calling for stronger regulations to ensure that the bran reaches its rightful recipients—legitimate livestock farmers and agricultural businesses.

How is this happening?

An investigation conducted by Alayam, our sister newspaper, uncovered concrete evidence of this black market.

Visits to several feed stores revealed quantities of BFMC-distributed wheat bran being sold at prices between BD 3 and BD 3.5 per bag—still higher than the official rate.

What went wrong?

A farmer explained that many farmers rely on intermediaries to collect their share of bran from the BFMC, avoiding the inconvenience of daily collection.

These intermediaries purchase bran on behalf of the farmers and deliver it to their doorsteps. While this seems straightforward, the farmer explained that it’s more complicated than it appears. Intermediaries are exploiting the system by adding 10 to 20 extra bags beyond what the farmer requested.

For example, if a farmer orders 100 bags, the intermediary might take 110 or 120 bags, as the BFMC often provides a surplus of 10-20 bags for every 100 bags. However, this extra bran never reaches the farmer; instead, it is sold on the black market.

The original buyer, the farmer, remains unaware that this illicit trade is happening under their name.

Farmers confirmed that this illegal practice has been ongoing for some time, primarily benefiting hobbyist breeders, such as horse owners, and small-scale farmers who are not registered with the Ministry of Agriculture and, therefore, do not qualify for direct subsidies.

Illegal price controllers

The market regulation system, originally intended to stabilize prices, has fallen into the hands of resellers who now act as price controllers. According to the farmers, this black market is tightly controlled, with resellers manipulating prices across various regions.

In some places, bran prices have surged to BD 4.5 or BD 5 per bag, doubling the BFMC’s official rate. In extreme cases, particularly during shortages, stores have charged up to BD 6 per bag, placing immense financial strain on farmers.

Conditional sales

Resellers have also introduced conditional sales, limiting the quantity of bran they sell to unfamiliar buyers while reserving larger amounts for regular customers.

For unfortunate farmers who approach resellers for only one or two bags, especially during periods of scarcity, the price can reach up to BD 6 per bag. This situation is causing significant hardship, with many farmers even forced to abandon their profession.

Urgent intervention needed

The BFMC is urging authorities to address this issue immediately, warning that the black market is harming Bahrain’s livestock farming sector and causing unnecessary financial hardship.

As the situation worsens, many farmers are calling for stricter enforcement and regulation to protect their livelihoods from further exploitation.