Name: Amiraa Nasr
ID: 54561
The Ministry of Supply and Internal Trade has announced a suspension of flour subsidy for the subsidized bread program next month, a move that is expected to cut wheat imports by as much as 10 percent by cracking down on smuggling.
In the fiscal year ended June 30, wheat imports amounted to 5.58 million tons, up from 4.4 million tonnes in the previous year.
In an effort to curb waste, the state will stop next month subsidizing flour used by bakeries selling cheap bread.
"Instead, subsidized bread will be limited to consumers," said Mohammad Sweid, a spokesman for the Ministry of Supply.
The subsidy card holders now receive bread at five piasters per loaf, less than a tenth of the cost of production, through smart cards that allocate a daily ration to citizens and compensate bakeries for production cost differentials with each use of the card.
Sweed said the new measure would eliminate the incentive to smuggle flour, reduce waste and help the state save 8 billion pounds ($ 447 million) from the subsidized food bill for the fiscal year 2017-2018, worth 85 billion pounds.
ID: 54561
The Ministry of Supply and Internal Trade has announced a suspension of flour subsidy for the subsidized bread program next month, a move that is expected to cut wheat imports by as much as 10 percent by cracking down on smuggling.
In the fiscal year ended June 30, wheat imports amounted to 5.58 million tons, up from 4.4 million tonnes in the previous year.
In an effort to curb waste, the state will stop next month subsidizing flour used by bakeries selling cheap bread.
"Instead, subsidized bread will be limited to consumers," said Mohammad Sweid, a spokesman for the Ministry of Supply.
The subsidy card holders now receive bread at five piasters per loaf, less than a tenth of the cost of production, through smart cards that allocate a daily ration to citizens and compensate bakeries for production cost differentials with each use of the card.
Sweed said the new measure would eliminate the incentive to smuggle flour, reduce waste and help the state save 8 billion pounds ($ 447 million) from the subsidized food bill for the fiscal year 2017-2018, worth 85 billion pounds.
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