The Ministry of Social Solidarity is preparing a new plan to stop black market sales of subsidized flour used for bread production, sources said.
Under the current system, owners of bakeries purchase one ton of flour–the market price of which is LE3000 a ton–at the subsidized price of LE160 a ton, marking it very tempting for the unscrupulous to sell the flour supplies on the black market. This in turn leads to violations of the weight and production specifications for subsidized bread.
According to the new plan, which aims to curb such violations, bakeries will purchase flour at market value. Then the ministry’s distribution company will purchase a pre-determined quantity of bread made according to specifications and pay for it on the spot. The bakery owner will have to ensure that he complies with the specifications or run the risk of not being able to sell the bread.
The bread will then be sold at distribution outlets at the subsidized price of LE0.05 a loaf.
The ministry is still examining several points related to the new plan, including financial costs of the project, mechanisms for the distribution of bread and the ability of bakery owners to buy the flour at the market price.
Translated from the Arabic Edition.
