The purpose of this chapter is to tease out market distortions that have emerged from the above study of the baladi bread supply chain. The discussion focuses on three key types of distortions – leakages, wastage and poor regulation – that have emerged from data and testimonies in the field. Each distortion looks at different factors that contribute to the misallocation of government resources in the bread subsidy system. The study of these market distortions will eventually underline the market pathologies that are inherent in the baladi bread subsidy system by narrowing down how each distortion occurs at various levels of the supply chain.
