The General Bakery Chamber of Egypt's Federation of Commercial Chambers convened a meeting to discuss several matters related to the country's bread system. The meeting, chaired by Abdullah Gharab, head of the chamber, addressed issues such as extending the deadline for obtaining electronic licenses and a proposal to sell subsidized bread at free market prices. The current deadline for electronic licenses is set to expire on December 30, 2026.
The chamber proposed extending the deadline for electronic licenses by one year. This move aims to provide more time for bakeries to comply with the new licensing requirements. The chamber also suggested allowing subsidized bakeries to sell bread at free market prices to citizens who do not hold subsidized food cards. This proposal seeks to ensure a steady supply of bread across the country and prevent price manipulation.
The proposal includes selling bread at a price announced and approved by relevant authorities, with a mechanism for periodic review to reflect production costs. Bakeries would be required to declare the price of bread and issue receipts to customers. The plan also involves intensifying monitoring and inspection efforts to ensure compliance with specifications and prevent manipulation.
The chamber emphasized the need to separate sales of bread sold at free market prices from subsidized bread. This would involve maintaining independent records and monitoring systems to prevent any impact on subsidized bread allocations. The goal is to ensure that citizens eligible for subsidized bread continue to receive their entitled share.
The meeting also reviewed the penalties and violations related to bakeries, in light of the implementation of the direct deduction system and the decision by the Minister of Supply to form a committee for continuous monitoring. This aims to achieve stability within the subsidy system and ensure its smooth operation.
The recent increase in high-quality flour prices has sparked discussions on the tourist bread sector. The price of high-quality flour has risen by around 25%, from 16,000-17,000 pounds per ton to 20,000-21,500 pounds per ton. This increase is expected to raise the production cost of tourist bread by around 12.5%.
The chamber is exploring solutions to address the impact of rising production costs on the bread sector. One possible solution is reducing the weight of tourist bread by 10-15 grams. However, final decisions on pricing and weights rest with the Ministry of Supply's cost committee, which will study production costs and changes in operating expenses.
Key points
- The General Bakery Chamber proposes extending the deadline for electronic licenses and selling subsidized bread at free market prices.
- The chamber aims to ensure a steady supply of bread and prevent price manipulation.
- The recent increase in flour prices may lead to a 12.5% rise in tourist bread production costs.
