Egypt bakery division seeks subsidy increase in talks with Ministry of Supply

The General Division of Bakeries is set to meet with Egypt’s Minister of Supply and Internal Trade in Alamein to discuss the future of the subsidized bread system. The meeting aims to finalize the mechanisms for a new subsidy framework and address rising operational costs.

Representatives from the bakery sector have submitted a memorandum containing 14 demands. Key issues include the need to re-evaluate the cost of bread production due to increased wages, rising petroleum prices, and a 200% increase in the cost of flour bag waste. The sector is requesting that production costs be reviewed at least twice a year or quarterly to reflect actual economic changes.

Negotiations are currently focused on the level of support required. While the Ministry of Supply has proposed a 10% increase, the bakery division is seeking a 40% increase to cover production and operating expenses. Preliminary calculations suggest that if a daily ration of five loaves is provided at approximately 1.5 EGP per loaf, the monthly credit for an individual would be around 225 EGP, or roughly 900 EGP for a family of four. This support is intended to be provided as a credit balance linked to goods rather than direct cash.