About 1,500 state-subsidized bakeries ceased operations this month as the Ministry of Supply and Internal Trade implemented a new direct debit system, a source on the board of the Bakeries Division at the Federation of Egyptian Chambers of Commerce told Al Manassa.
Ahmed Kamal, assistant minister and official spokesperson for the Ministry of Supply, attributed the stoppages to legal and administrative issues concerning the owners of these bakeries.
The Ministry of Supply and Internal Trade began implementing the direct debit system for bakery owners on Aug. 1. The initiative aims to end the practice of trading wheat and flour on a “consignment” basis, in which settlements among the General Authority for Supply Commodities (GASC), flour mills, and bakeries took place on a deferred timeline.
Under the new system, financial settlements among these entities occur immediately.
Supply and internal trade minister Sherif Farouk defended the new framework, stating in earlier remarks that he aims to “reorganize the financial relationship between the state, mills, and bakeries, and raise the operating efficiency of the subsidized bread system without compromising citizens’ right to obtain bread.”
Speaking to Al Manassa on condition of anonymity, the Bakeries Division source said the affected bakeries account for approximately 5.7% of the 26,500 bakeries operating within the subsidized-bread system nationwide. These bakeries face problems with the bank accounts registered with the ministry, which requires valid accounts as a mandatory condition for regular operations.
“Among the main causes of bank account suspensions are administrative freezes placed on certain accounts and inheritance disputes that led to frozen accounts. With the implementation of the new system, conducting transactions through these accounts has become an essential condition for bakeries to continue their business normally,” the source added.
For his part, Ahmed Kamal said bakeries affected by bank account issues must first reconcile their legal status and submit the required documentation to banks—such as official inheritance certificates and other administrative paperwork—to reactivate their accounts before joining the direct debit system.
Kamal confirmed to Al Manassa that the ministry still classifies these bakeries as “active” and that they can operate under the new system, but the absence of an active bank account prevents the transfer of their financial dues. “The ministry cannot transfer bread production costs without a bank account or an approved financial mechanism to receive funds,” Kamal added.
Kamal noted that certain cases involve legal disputes or unresolved financial and legal standings stemming from the heirs of deceased bakery owners. He emphasized that these owners are currently working to adjust their statuses and are joining the system sequentially.
The bank account crisis coincides with another issue affecting roughly 4,000 bakeries. A source in the ministry’s Control and Distribution Department previously revealed to Al Manassa that approximately 4,000 state-subsidized municipal bakeries faced the threat of exclusion from the subsidized bread system due to their inability to pay minimum financial penalties owed to the government.
However, the assistant minister confirmed today that the ministry granted these bakeries payment facilities to settle their debts in installments, helping them maintain normal operations. He added that the ministry has no intention to suspend them over outstanding debts.
