CAIRO - 6 June 2024: The Egyptian Ministry of Supply is forming a committee to study the cost of producing bread in public, private, and sovereign entity bakeries for the first time since 2020.
The decision comes after the recent government price increase of subsidized bread by 300 percent, to 20 piasters per loaf. This marks the first price increase in 30 years.
The Ministry directed a study to determine production costs based on factors including bread type, fuel type, and the sector to which the bakery belongs.
"The committee is not tasked with raising bread prices for citizens. The 20-piaster price remains, and there's no change for free tourist bread. This study solely focuses on manufacturing costs," an anonymous government official told Ashraq Bloomberg.
Egypt provides subsidized bread to over 70 million people. However, Prime Minister Mostafa Madbouly recently announced a shift from in-kind subsidies to cash support starting in the fiscal 2025/2026.
The official explained that the study aims to recalculate production costs and increase profit margins for bakery owners due to rising production costs and wages.
The 14-member committee comprises representatives from the Ministry of Supply, the Supply Commodities Authority, the Holding Company for Food Industries, the Ministry of Finance, and the Bakeries Division. The committee is authorized to seek additional expertise for the study.
Rising local wheat prices and other production cost increases are reasons for forming the committee.
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