Egypt's PM issues decision fixing unsubsidized bread price



Mon, 21 Mar 2022 - 11:35 GMT


Mon, 21 Mar 2022 - 11:35 GMT

The first mass-delivered bread made of insects are seen at the Finnish food company Fazer bakery in Helsinki, Finland November 23, 2017. REUTERS/Attila Cser

The first mass-delivered bread made of insects are seen at the Finnish food company Fazer bakery in Helsinki, Finland November 23, 2017. REUTERS/Attila Cser

CAIRO - 21 March 2022: Prime Minister Moustafa Madbouli issued on Monday a decision on fixing the price of unsubsidized bread at all outlets and bakeries.

Under the decision, the 45-gram bread loaf will be at LE50 piasters, the 65-gram loaf at LE75 piasters, and the 90-gram loaf at one pound.

The 40-gram French bread loaf will be sold at LE50 piasters, the 60-gram loaf at LE75 piasters and the 80-gram loaf at one piaster.

Violators of this decision could face a fine of LE100,000 minimum and LE5 million maximum.

A crisis committee to confront the impact of the current global crisis on strategic food commodities convened its second meeting chaired by Madbouli.

Earlier, Madbouli said that the committee meeting will be held on a weekly basis in order to follow up on the latest global developments and take all the necessary measures in this respect.

Madbouli also pointed out to President Abdel Fattah El Sisi's directives to prepare for the various scenarios to deal with the global circumstances and take the necessary measures to help mitigate the adverse impacts of the crisis on the citizen and the national economy.

During his inspection tour of some development projects in the Old Cairo on Friday, President Abdel Fattah El Sisi came upon an owner of a bakery asking about the price of unsubsidized bread.
Asking the owner about the price of one loaf of the unsubsidized bread, President Sisi said: “For how much, do you sell it?” The owner replied: “half a pound for a loaf of bread.” The president replied: “Do you mean you sell it for less than its actual cost? It costs 65 piasters, do you sell it for 50 piasters?”
President Sisi asked another question to a worker at the bakery: "Why is the unsubsidized bread high in the market?  Meanwhile, another worker besides the first one answered “Because of the global rise in general.” However, President Sisi replied: “It is not your business as long as we did not increase the price of the flour.”
President Sisi clarified that selling bread is highly profitable unlike other commodities which take weeks to be sold; he said that baking 10,000 loaves every day with earning 20 piasters for each loaf generates 4,000 EGP a day.
“This is a small number for one bakery that makes only 10,000 loaves a day?” said President Sisi.
The price of one loaf of the unsubsidized bread has been increased by 25 and 50 piasters in several bakeries following the military escalation between Russia and Ukraine, the largest wheat exporting countries to Egypt.
To put an end to the random increase of the prices, President Sisi instructed the government, on March 15, to set a fixed price for the unsubsidized loaf of bread. He urged the government to study the cost of production per loaf, and accordingly designate the selling price. That is in tandem with charging the Ministry of Supply and Internal Trade with providing the necessary flour to bakeries to inhibit the fluctuation of the cost.
The president also stressed that supply police and inspectors must ensure that the decision is implemented by merchants, according to a statement by the presidency.  
On the occasion of the Holy Month of Ramadan, the president commanded the Egyptian Armed Forces, the Ministry of Supply and Internal Trade, and Long Live Egypt Fund to coordinate together to offer low-priced food products to consumers, and distribute free staple boxes among low-income citizens.



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