The government is expected to finalize a proposal to substitute the current ration-card subsidy system with a cash-in-hand system after the Eid el-Adha holidays later this month. According to an official source, the new arrangement would be jointly administered by the ministries of social solidarity, trade, investment, local development and manpower.
The official source explained that the proposal is being tabled in response to directives by President Hosni Mubarak — issued at the ruling National Democratic Party’s recently-concluded annual congress — to ensure that state subsidies reach the beneficiaries that most need them.
The source went on to say that the government planned to purchase bread at free-market prices before selling it on to consumers at LE0.05 per loaf. "This will thwart attempts to sell subsidized flour on the black market, or mix it with lower-quality ingredients," the source explained.
"Coupons would be distributed for each family to buy bread," the source added, noting that bread would not be included on ration cards. "Or they will be given the equivalent amount in cash every month."
"Subsidized flour might be included on ration cards in certain rural areas, though," the source added.
"Among the problems we would face with such a system, however, is how to disperse funds to citizens that don’t have national identification cards, which means they aren’t registered," the source concluded.
Translated from the Arabic Edition.
