Battling rising inflation, Egypt on Monday said it would start selling discounted bread to people outside its food subsidy programme.
Supply Minister Ali Moselhy said a traditional flat loaf weighing 90 grams would be sold at cost price through prepaid cards. The exact price of the loaf will be later decided but it will be less than 1 Egyptian pound ($0.03).
The programme will undergo an unspecified trial period starting later this week, he said.
The local variety of bread known as “balady” is a staple for the vast majority of Egypt’s 104 million people. More than 70 million are entitled to state-subsidised bread sold at five piasters a loaf.
Bread has traditionally been viewed in Egypt as a politically sensitive commodity, with successive governments deciding to leave their low price unchanged rather than run the risk of street unrest.
An attempt to remove bread subsidies in 1977 sparked deadly street protests and forced the government at the time to rescind its decision.
Egyptians not covered by the food cards buy their bread on the free market, where prices range between 0.50 and one pound for a larger and better-quality balady loaf.
"The point is to make this important commodity available without any exaggeration in profits by commercial bakeries," said the Supply Minister. The decision to sell bread at a discount could increase the amount sold by the government by up to 10 per cent, he said.
Egypt has at times been the world’s largest wheat importer, buying more than 10 million tonnes on the world market every year. Its wheat import bill has significantly risen since the war between Russia and Ukraine — Egypt’s chief wheat suppliers — broke out nearly a year ago.
On Saturday, Prime Minister Mostafa Madbouly told reporters the government was producing 1 billion loaves of the 5-piaster variety each year. The actual cost of that subsidised loaf stood at 0.65 pounds two years ago.
The cost rose to 0.80 pounds after the outbreak of the Russia-Ukraine war and to 0.90 pounds in the past two weeks following a rapid slide in the value of the Egyptian pound, now traded at nearly 30 pounds to the US dollar compared to 16 only a year ago.
“That last 10-piaster rise in the cost of the loaf is costing 10 billion pounds [nearly $340 million],” Mr Madbouly said.
“The Egyptian government is continuing to subsidise basic commodities to the maximum of its abilities. What the state shoulders exceeds even the resources available to developed nations.”
Inflation in Egypt rose to 21.3 per cent last month, its highest in five years.
Mr Moselhy said the government wanted to procure about 4 million tonnes of wheat from local growers when the harvest begins in April.
Mr Madbouly said the government planned to offer incentives to wheat farmers this year but did not give details.
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
Ramy%3A%20Season%203%2C%20Episode%201
%3Cp%3E%3Cstrong%3ECreators%3A%20%3C%2Fstrong%3EAri%20Katcher%2C%20Ryan%20Welch%2C%20Ramy%20Youssef%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERamy%20Youssef%2C%20Amr%20Waked%2C%20Mohammed%20Amer%0D%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
more from Janine di Giovanni
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Francesco Totti's bio
Born September 27, 1976
Position Attacking midifelder
Clubs played for (1) - Roma
Total seasons 24
First season 1992/93
Last season 2016/17
Appearances 786
Goals 307
Titles (5) - Serie A 1; Italian Cup 2; Italian Supercup 2
THE DRAFT
The final phase of player recruitment for the T10 League has taken place, with UAE and Indian players being drafted to each of the eight teams.
Bengal Tigers
UAE players: Chirag Suri, Mohammed Usman
Indian: Zaheer Khan
Karachians
UAE players: Ahmed Raza, Ghulam Shabber
Indian: Pravin Tambe
Kerala Kings
UAE players: Mohammed Naveed, Abdul Shakoor
Indian: RS Sodhi
Maratha Arabians
UAE players: Zahoor Khan, Amir Hayat
Indian: S Badrinath
Northern Warriors
UAE players: Imran Haider, Rahul Bhatia
Indian: Amitoze Singh
Pakhtoons
UAE players: Hafiz Kaleem, Sheer Walli
Indian: RP Singh
Punjabi Legends
UAE players: Shaiman Anwar, Sandy Singh
Indian: Praveen Kumar
Rajputs
UAE players: Rohan Mustafa, Ashfaq Ahmed
Indian: Munaf Patel
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
