The Egyptian Ministry of Social Solidarity will announce soon a change in the subsidised bread production cost it uses to set the subsidy paid to bakers, according to Al-Ahram daily.
A committee was formed through the Central Authority for Public Mobilisation and Statistics (CAPMAS) to revisit the cost figure upon the request of Gouda Abdel Khalek, minister of social solidarity.
The new cost figure would range from LE70 ($11.8) to LE76 per sack of flour as oppsed to the current LE60.
The increase comes to accommodate the growth in operating costs of producing bread, according to the president of the bakers division in the chamber of commerce.
The contract between bakers and the government states that cost figures are to be reviewed yearly. The last cost change was done 16 months ago.
Subsidies comprise a significant proportion of Egypt’s general budget at 24 per cent of total expenditures, out of which bread and fuel are the most significant draw.
On Thursday, Egypt, the world's largest wheat importer, bought 240,000 tonnes of Russian wheat for 21-30 November shipment and a further 180,000 tonnes for 1-10 December on a free onboard basis, the main government wheat buyer said Wednesday.