Khaled Hanafy, minister of food supply and domestic trade, said on Sunday that a new bread distribution scheme will first be applied in Port Said, then in the remaining canal governorates by next week and nationwide within the next few months. He claimed that it would enable bakery owners to get their finanacial dues immediately and preserve the bread subsidy, estimated at around LE22 billion, from being wasted.
The new scheme stipulates monthly shares of bread for citizens who will be able to receive them through their ration cards. Each citizen will get 150 loaves of bread monthly at 5 piasters per loaf. Citizens will also receive free food supplies at the end of every month in the case that their allotted bread share was not fully consumed.
Under the scheme, the ministry will buy each loaf of bread at 33.7 piasters from bakeries fueled by diesel oil and 33.5 piasters from bakeries fueled by gas. Money will be transferred immediately to the bank accounts of the bakery owners, who will gain a net profit of LE260 per each ton of flour.
During a meeting with members of the chamber of commerce in Port Said, Hanafy said bread prices will be assessed every three months. The first batch of the delayed financial dues to the bakeries will be disbursed by the government before the end of the week. The rest will be paid through three other payments.
Hanafy added that it has been agreed with local and international food companies to improve Egyptian grocers, an estimated 25,000 stores, as well as the cooperatives, estimated at 5,000 branches. He also spoke of supplying grocers and cooperatives goods at prices lowered 15-20 percent. Citizens who do not have ration cards would still be able to purchase food from supply stores.