Egypt set the price of subsidized bread at 1.5 pounds a loaf under a new cash‑transfer system, Supply and Internal Trade Minister Sherif Farouk said Tuesday, raising concerns over how much support will remain for other staples covered by the subsidy program.
In 2024, the government raisedthe price of subsidized bread to 20 piasters from five, the first increase in decades. The hike shocked Egyptians but stopped short of igniting mass unrest, defying predictions of a repeat of the 1970s Bread Riots.
Egypt is weighing cash subsidies of 200 to 350 pounds ($4–7) per person each month, Supply Ministry spokesperson Ahmed Kamal told Al Manassa. He said the final value will be set after technical and financial studies and will require futher approval from the “relevant authorities.”
Kamal noted that with the price of subsidized bread set at 1.5 pounds per loaf under the new system, a beneficiary consuming the maximum monthly allocation of 150 loaves would use 225 pounds ($4.50) of their subsidy on bread alone.
Based on these calculations, bread would account for the largest share of the new cash subsidy. However, a Ministry of Supply source, speaking on condition of anonymity, told Al Manassa that the ministry is working to ensure the overall subsidy remains sufficient to provide beneficiaries with the same allocations currently available under the ration commodity system.
The source said the portion allocated to other food commodities (not including bread) under the proposed cash subsidy system would range between 70–75 pounds (around $1.5) per person, enabling beneficiaries to obtain the same basic quantities of subsidized goods currently available.
“The ongoing studies are based on estimated prices for essential commodities,” the source added. “The price of a kilogram of sugar is being calculated within a range of 20–28 pounds (around 50 cents), while a bottle of cooking oil is estimated at 45–50 pounds ($1), ensuring that beneficiaries can continue to meet their basic needs through the ration system.”
Prime Minister Mostafa Madbouly recently announced that the government aims to convert the ration subsidy system from in-kind support to a cash subsidy system during the next fiscal year. Under the current system, each person registered in the ration program receives 50 pounds ($1) to purchase goods offered through ration outlets, where prices are subsidized and therefore lower than those in the open market.
