Cairo – Mubasher: The Ministry of Supply announced it will stop subsidising flour by 1 August in order to clamp down on smuggling in bakeries, according to a statement.
The new price of flour will not affect the price of subsidised bread, keeping its price fixed at 5 piasters per loaf, but it is a step in making sure that the subsidies reach those who most need it, the ministry stated.
The ministry will come up for the cost difference which will arise as bakery owners will buy flour for an unsubsidised price, while selling bread at an unchanged, fixed price.
The ministry spokesman, Mohammed Sweid, said in a call broadcast on MBC Egypt that the new procedure will curtail smuggling and reduce waste, as well as save EGP 8 billion ($447 million) from the allocated EGP 85 billion annual food subsidy bill of 2017/2018.
He added that the drop in flour consumption will reduce imports by 10%.
