[REVISION HISTORY]

Egypt food subsidy reforms and food security measures

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2026-10-28 16:19 UTC → 2026-11-01 10:22 UTC · added ~~removed~~

In late July 2026, the European Union completed a €4 billion loan to Egypt as part of a broader €5 billion assistance package. Concurrently, the IMF completed reviews of Egypt’s Extended Fund Facility and Resilience and Sustainability Facility, resulting in an approximately $1.8 billion disbursement. By August 2026, the government intensified plans to transition from commodity-based subsidies to a conditional cash-based model, tentatively scheduled for January 1, 2027. As reforms progressed, the government began implementing subsidy cuts to reduce the program's cost, which reached $3.2 billion last year. Since June 2026, approximately 850,000 people have been removed from the subsidy system, with officials stating millions more could be excluded next year to target only the ‘undeserving’. These measures have impacted citizens, with some reporting a tenfold increase in the cost of staple flatbread following the suspension of subsidy cards. To mitigate rising costs, the Ministry of Supply and Internal Trade announced updated prices for essential goods, such as sugar and rice at 25 EGP per kilogram, effective September 10, 2026. The Ministry also launched a discount initiative running through March 2027, offering 30 essential commodities at 20% to 25% off through 284 outlets. In late October 2026, Minister of Agriculture and Land Reclamation Alaa Farouk introduced an executive plan to develop the agricultural sector. A central component is an initiative to support small-scale farmers by preparing one million acres of land held by those with less than two acres for wheat cultivation. To assist these farmers, the Ministry will provide agricultural mechanization and equipment at a 50% discount. Furthermore, the Ministry aims to enhance livestock productivity through genetic improvement and artificial insemination programs to boost red meat and dairy production.

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