Egypt implements 20% wheat price increase for subsidized bread production

CAIRO – 4 August 2024: The Ministry of Supply and Internal Trade has increased the selling prices of both local and imported wheat for producing subsidized bread by approximately 20 percent, now set at LE 13,750 per ton starting this August, as detailed in a government document reviewed by Asharq Bloomberg.

 

Furthermore, the document specifies that mills have also elevated the prices of flour supplied to local bread bakeries to LE 16,000 per ton, effective from the beginning of August, marking a 35 percent increase from the previous price of LE 11,800 per ton.

 

The adjustments will not impact the prices of subsidized local bread, as the additional costs will be covered by the state budget, equivalent to 20 piasters on the ration support card, according to an official source who communicated with Asharq Bloomberg.

 

In a related development earlier in May, Egypt raised the subsidized bread price from 5 piasters to 20 piasters, as announced by Prime Minister Mostafa Madbouly during a press conference. 

 

Additionally, Prime Minister Madbouly noted that this adjustment marks the first increase in 30 years and highlighted that the government's cost for a loaf of bread stands at 125 piasters.

 

Egypt, being the world's largest wheat importer, extends subsidized bread to over 70 million residents through an extensive food subsidy program.