Egypt to raise price of subsidized bread wheat by 20%

The Ministry of Supply and Internal Trade raised the selling prices of wheat, both local and imported, destined to produce subsidized bread by about 20% to reach EGP 13,750 per ton starting this August, according to a government document seen by Asharq Bloomberg.

The government document indicated that mills also raised the prices of flour supplied to local bread bakeries to EGP 16,000 per ton starting from the beginning of August, compared to the previous price of EGP 11,800 per ton, an increase of 35%.

The prices of subsidized local bread will not be affected, as the increase will be borne by the state budget, which is 20 piasters on the ration support card, according to an official government who spoke to Asharq Bloomberg.

Earlier in May, Egypt raised the price of subsidized bread from 5 piasters to 20 piasters, Prime Minister, Mostafa Madbouly, announced during a press conference.

Prime Minister Madbouly added that this raise came for the first time in 30 years. He added that the cost of a loaf of bread to the government is 125 piasters.

Egypt is the largest importer of wheat in the world and provides subsidized bread to more than 70 million of its residents as part of a huge food subsidy program.