{"id":546814,"date":"2022-05-30T04:00:42","date_gmt":"2022-05-30T04:00:42","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/30\/bread-subsidies-arent-changing-in-the-near-future-el-moselhy-says\/"},"modified":"2022-05-30T04:00:42","modified_gmt":"2022-05-30T04:00:42","slug":"bread-subsidies-arent-changing-in-the-near-future-el-moselhy-says","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/30\/bread-subsidies-arent-changing-in-the-near-future-el-moselhy-says\/","title":{"rendered":"Bread subsidies aren\u2019t changing in the near future, El Moselhy says"},"content":{"rendered":"

<\/a> Scrapping bread subsidies for banknotes is shelved for now, El Moselhy tells <\/strong>Senate:<\/strong> The Sisi administration\u2019s previously-floated plan to replace subsidized bread with cash transfers is not going to happen anytime soon, Supply Minister Ali El Moselhy told the Senate yesterday. \u201cWe can begin to consider this policy some time after the crisis is over, but at the moment we can\u2019t change the system,\u201d the minister said, stressing that \u201cthe government still believes that subsidized bread is still very important for low-income households.\u201d El Moselhy\u2019s statement came as a response to a request from Senate Agriculture and Irrigation Committee Chairperson Abdel Salam El Gebaly to begin implementing the switch now.<\/p>\n

Bread subsidies are still a big line item in the state budget:<\/strong> The proposed FY 2022-2023 budget, which Finance Minister Mohamed Maait presented to the House of Representatives earlier this month<\/a>, penciled in EGP 90 bn for food subsidies next fiscal year, rising slightly from EGP 86 bn allocated for the current fiscal year. MPs have suggested<\/a> that the state should be upping its spend on commodity subsidies to help contain the impact of rising food prices.<\/p>\n

REFRESHER-<\/strong> President Abdel Fattah El Sisi first put forward the prospect of lifting or otherwise reworking bread subsidies last year<\/a> \u2014 before the war in Ukraine sent shockwaves through global food markets. El Moselhy had said at the beginning of the year<\/a> that the government would make a final decision on how subsidies would be reworked by the end of March, saying at the time that there were several scenarios under consideration.<\/p>\n

Bread price caps aren\u2019t changing, but the state isn\u2019t planning to impose controls on other commodities:<\/strong> The minister also turned down a separate proposal from Sen. Ahmed Salah El Din to impose price controls on basic commodities, which the senator suggested is \u201cnecessary to tighten control on the black market and prevent retail traders from exploiting the current crisis.\u201d El Moselhy stressed that Egypt is a \u201cmarket economy that is regulated by the forces of supply and demand\u201d<\/strong> and that we left behind the era of state-imposed price controls in the 1960s and 1970s. The government imposed<\/a> price controls on unsubsidized bread in March as a temporary, three-month measure, El Moselhy said.<\/p>\n

The cornerstone of the government\u2019s food commodity strategy is to build reserves:<\/strong> The Sisi administration\u2019s policy of maintaining a six-month strategic reserve of basic commodities will continue to be implemented, particularly as it has proven successful in stabilizing prices, El Moselhy said. This policy, among other decisions, has helped the country to successfully absorb the shock of the global food crisis triggered by the Russia-Ukraine war, the minister said. \u201cFor example, the price of sugar has only increased EGP 3 per kg; this was largely thanks to our maintaining a six-month stock of the commodity.\u201d<\/p>\n

Part of that has been a major spending push on expanding storage capacity:<\/strong> As part of its strategic reserve targets, \u201cthe government had to spend as much as USD 1.8 bn to double the country\u2019s storage capacity of wheat and grain cereals\u201d over the past five years, El Moselhy said. The government has so far built a national silos network with a storage capacity of 3.4 mn tons, \u201cand right now we are planning to increase this capacity to reach 5 mn tons in 2025,\u201d he said.<\/p>\n

BACKGROUND- <\/strong>We dove into the government\u2019s drive to increase our grain storage capacity<\/a> in Hardhat.<\/p>\n","protected":false},"excerpt":{"rendered":"

Scrapping bread subsidies for banknotes is shelved for now, El Moselhy tells Senate: The Sisi administration\u2019s previously-floated plan to replace subsidized bread with cash transfers is not going to happen anytime soon, Supply Minister Ali El Moselhy told the Senate yesterday. \u201cWe can begin to consider this policy some time after the crisis is over, […]<\/p>\n","protected":false},"author":1,"featured_media":546815,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8519],"tags":[779,317,72,1972,98],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-546814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-public-policy","tag-ali-el-moselhy","tag-commodities","tag-enterpriseam","tag-public-policy","tag-subsidies","wpautop","entry"],"acf":{"mongo_id":"4e2ee802-c056-49c4-b562-302f95f91826","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/5\/394.jpg","photo_position":"above","related_issue":[546803],"teaser":"","voice_url":""},"yoast_head":"\nBread subsidies aren\u2019t changing in the near future, El Moselhy says - 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The ministry is considering several scenarios \u2014 which include targeted subsidy\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":621161,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/02\/el-moselhy-continued-to-make-the-rounds-to-weigh-in-on-bread-price-hikes\/","url_meta":{"origin":546814,"position":2},"title":"El Moselhy continued to make the rounds to weigh in on bread price hikes","author":"enterpriseam admin","date":"2 June 2024","format":false,"excerpt":"Another carb-heavy night on the airwaves: The nation\u2019s talking heads didn\u2019t shift their attention from bread prices, following the Madbouly government\u2019s decision to slash bread subsidies, hiking the price of subsidized bread by 300%. Don\u2019t point the finger at the IMF: The IMF had nothing to do with the government\u2019s\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/6\/70.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":548181,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/07\/28\/last-nights-talk-shows-our-bread-prices-will-remain-stable\/","url_meta":{"origin":546814,"position":3},"title":"Last Night\u2019s Talk Shows: Our bread prices will remain stable","author":"enterpriseam admin","date":"28 July 2022","format":false,"excerpt":"It was a notably quiet night on the airwaves last night: The big talking point last night continued to be the government\u2019s package of social support measures announced on Tuesday.Bread subsidies aren\u2019t changing: Bread prices will not rise and the government is sticking to its plans in the budget, which\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":549980,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/10\/is-bread-subsidy-reform-back-on-the-table\/","url_meta":{"origin":546814,"position":4},"title":"Is bread subsidy reform back on the table?","author":"enterpriseam admin","date":"10 October 2022","format":false,"excerpt":"Supply Minister revives talk of bread subsidy reform in the House of Representatives: Supply Minister Ali El Moselhy called on MPs to form an ad hoc committee to look into possible changes to the country\u2019s massive bread subsidy program. El Moselhy made the call during a meeting of the House\u2026","rel":"","context":"In "SUBSIDIES"","block_context":{"text":"SUBSIDIES","link":"https:\/\/enterpriseam.com\/egypt\/category\/subsidies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/10\/172.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":544392,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/01\/last-nights-talk-shows-war-wheat-bread-and-babies\/","url_meta":{"origin":546814,"position":5},"title":"Last Night\u2019s Talk Shows: War, wheat, bread, and babies","author":"enterpriseam admin","date":"1 March 2022","format":false,"excerpt":"Russia-Ukraine took center stage on our airwaves again: Kelma Akheera\u2019s Lamees El Hadidi discussed possible actions by the UN Security Council on the invasion of Ukraine with Assistant Secretary-General of the Arab League Hossam Zaki (watch, runtime: 7:10) before turning to Al Ahram Center for Political and Strategic Studies\u2019 Mohamed\u2026","rel":"","context":"In "LAST NIGHT\u2019S TALK SHOWS"","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/546814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=546814"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/546814\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/546803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/546815"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=546814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=546814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=546814"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=546814"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=546814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}