Government considers doubling bread subsidy points to reduce consumption
Citizens will receive 20 piastres instead of 10 on every unbought loaf
Sources said that the Egyptian government is considering doubling the cash incentive for a programme aimed at encouraging citizens to reduce the consumption of subsidised bread in exchange for reducing the share of citizens’ daily loaves of bread by 20%.
Egypt currently distributes 150 loaves of bread a month of subsidised bread for every citizen, five loaves a day, since the start of the system to distribute bread with smart cards in April 2014.
The government sources that spoke to Reuters said that the subsidy points to be increased to EGP 0.20 per loaf, up from EGP 0.10, as some bakery owners are exploiting citizens and the government now.
Moreover, the sources added that some bakery owners are selling goods to citizens in exchange for bread points at a price of EGP 0.20 per loaf then collect the proceeds from the government on the basis of more than EGP 0.50 per loaf.
The citizen currently gets ten piastres for each loaf of bread unbought from their share at the end of the month and can use this share to buy goods.
The Ministry of Supply and Internal Trading was not immediately available for comment.
Another source said that increased bread subsidies will come with reducing the share of each citizen from five loaves a day to four only.The current average consumption is 3-3.2 loaves per day.
The subsidised bread is sold at five piastres for the loaf and the so-called tourist loaf is sold at EGP 0.50-EGP 1 per loaf.
INCREASED BREAD SUBSIDIES WILL COME WITH REDUCING THE SHARE OF EACH CITIZEN FROM FIVE LOAVES A DAY TO FOUR ONLY