Cutting down on expenses by adding corn flour to bread? The government wants to cut 1 mn tons of wheat imports and trim spending on bread subsidies by mixing either corn or sorghum flour into subsidized bread, five unnamed industry sources told Reuters. The proposal, presented to bakers and millers in late September, would see a 1:4 ratio of corn flour to wheat flour implemented starting April 2025.

Not everyone’s on board: Bakers and millers argue the change could hurt bread quality, affecting its texture and smell. This isn’t Egypt’s first attempt to introduce wheat alternatives — corn was used two decades ago, but was dropped after several years after industry pushback.

Crunching the numbers: “At best, the government could save around USD 35-41 per ton,” Cairo-based trader Hesham Soliman told the newswire. Using locally-grown corn in subsidized bread “could allow for significant hard currency savings,” two of the sources said, adding that those savings would vanish if the corn used were imported.

Remember: The Madbouly government is set to shift from in-kind subsidies to cash-basedsupport — a key element of the economic reform program linked to our most recent IMF package — starting next fiscal year. Enterprise sources previously told us that cash-based subsidies will range between EGP 500-1,250 and will be raised annually in line with inflation levels.

We just secured a big wheat buy: State grain buyer GASC secured 3.12 mn metric tons ofwheat last week. The government has been looking to capitalize on a global dip in prices in efforts to bolster strategic wheat reserves amid geopolitical tension. President Abdel Fattah El Sisi reportedly personally ordered GASC's biggest ever tender in August after he received an intelligence briefing that raised concerns over our food security.

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