{"id":549980,"date":"2022-10-10T03:21:52","date_gmt":"2022-10-10T03:21:52","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/10\/is-bread-subsidy-reform-back-on-the-table\/"},"modified":"2022-10-10T03:21:52","modified_gmt":"2022-10-10T03:21:52","slug":"is-bread-subsidy-reform-back-on-the-table","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/10\/is-bread-subsidy-reform-back-on-the-table\/","title":{"rendered":"Is bread subsidy reform back on the table?"},"content":{"rendered":"

<\/a> Supply M<\/strong>inister revives talk of bread subsidy reform in the House of <\/strong>Representatives: <\/strong>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 Agriculture Committee, which was discussing a USD 500 mn loan<\/a> the World Bank recently approved to support our wheat imports.<\/p>\n

The inside track: <\/strong>El Moselhy wants representatives of the House\u2019s agriculture, economic affairs and social solidarity committees to weigh in on reforming the program to bring wheat imports down. The goal is to reduce pressure on the state budget, curb demand for FX, and \u201cmake sure [subsidies] go to citizens who are really in need of them,\u201d El Moselhy said.<\/p>\n

One alternative: cash transfers for the neediest. <\/strong>El Moselhy revived a proposal to replace bread subsidies with cash support to the most vulnerable families, according to Rep. Hesham El Hossary, who chairs parliament\u2019s agriculture committee. That\u2019s in line with guidance from the World Bank, which said in its latest report on growth in the MENA region that food and energy subsidies are far more expensive for the state than \u201callowing prices to increase and supporting just the poorest 10% of the population with a cash transfer.\u201d<\/p>\n

El Moselhy\u2019s comments could put smiles on faces at the IMF: <\/strong>While bread subsidy reform won\u2019t likely form an explicit condition of the imminent<\/a> loan to Egypt from the IMF, the multilateral lender has called on us to take \u201cdecisive\u201d steps<\/a> toward fiscal and structural reforms that would address the state\u2019s budget deficit. BNP Paribas<\/a> analysts expect that subsidies \u201c<\/strong>are likely to be curtailed once the inflationary effects of the Ukrainian conflict start to subside.\u201d<\/p>\n

Watch this space: Top Egyptian officials are in Washington<\/strong>, DC, this week for the IMF and World Bank annual meetings.<\/p>\n

BACKGROUND- This is the first talk of reforming bread subsidies in a while: <\/strong>Plans to overhaul the longstanding bread subsidy system \u2014 which offers loaves at below-market prices to more than 60 mn people \u2014 have been on hold since war broke out in Ukraine. The war upended global commodity markets, driving food and energy price inflation at the same time as supply chain snarls were already driving prices up. As the world\u2019s largest importer of wheat \u2014 and with some 80% of its imports traditionally coming from Russia and Ukraine \u2014 Egypt has been particularly exposed to the shock. The government has been stepping up support<\/a> to the most vulnerable amid the cost of living crisis, bringing another 1 mn families under its Takaful and Karama social security program and allocating more funds to subsidized bread.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 Agriculture Committee, which was discussing […]<\/p>\n","protected":false},"author":1,"featured_media":549981,"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":[9261],"tags":[72,272,270,98,777,304,321],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-549980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-subsidies","tag-enterpriseam","tag-imf","tag-russia","tag-subsidies","tag-supply-ministry","tag-ukraine","tag-world-bank","wpautop","entry"],"acf":{"mongo_id":"fdba61a4-ba13-4035-a2a7-51511a9b61a0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/10\/172.jpg","photo_position":"above","related_issue":[549976],"teaser":"","voice_url":""},"yoast_head":"\nIs bread subsidy reform back on the table? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/10\/10\/is-bread-subsidy-reform-back-on-the-table\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is bread subsidy reform back on the table?\" \/>\n<meta property=\"og:description\" content=\"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. 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prices may rise, but it will \u201ctake time\u201d: The government is playing down the likelihood of an imminent increase in the price of subsidized bread amid rising global wheat prices, with Supply Minister Al El Moselhy telling reporters on Thursday that it \u201cwill take time\u201d for the government to\u2026","rel":"","context":"In "Commodities"","block_context":{"text":"Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/323.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568724,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/02\/supply-ministry-to-hold-public-consultations-on-whether-to-shift-to-cash-subsidies\/","url_meta":{"origin":549980,"position":1},"title":"Supply Ministry to hold public consultations on whether to shift to cash subsidies","author":"enterpriseam admin","date":"2 February 2020","format":false,"excerpt":"Supply Ministry further studies shift to cash subsidies: The Supply Ministry will hold public consultations to gauge opinion on the proposed system of doling out cash for food subsidy recipients in place of the current system of in-kind subsidies using ration cards, Supply Minister Aly El Moselhy told the local\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":546814,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/30\/bread-subsidies-arent-changing-in-the-near-future-el-moselhy-says\/","url_meta":{"origin":549980,"position":2},"title":"Bread subsidies aren\u2019t changing in the near future, El Moselhy says","author":"enterpriseam admin","date":"30 May 2022","format":false,"excerpt":"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\u2026","rel":"","context":"In "Public policy"","block_context":{"text":"Public policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/public-policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/5\/394.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":577938,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/12\/11\/moroccos-historic-world-cup-win-bread-subsidies-lead-coverage-on-the-talk-shows\/","url_meta":{"origin":549980,"position":3},"title":"Morocco\u2019s historic World Cup win + bread subsidies lead coverage on the talk shows","author":"enterpriseam admin","date":"11 December 2022","format":false,"excerpt":"The airwaves were lit up red and green last night, with the talking heads dedicating much of the evening\u2019s runtimes to covering Morocco\u2019s famous win against Portugal in the World Cup quarter-final yesterday. Wearing a red blazer and a green scarf in a probable nod to the Moroccan flag, Kelma\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\/2022\/12\/190.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593141,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/19\/subsidized-food-prices-to-be-reviewed-every-quarter-el-moselhy\/","url_meta":{"origin":549980,"position":4},"title":"Subsidized food prices to be reviewed every quarter -El Moselhy","author":"enterpriseam admin","date":"19 November 2019","format":false,"excerpt":"Subsidized food prices to be reviewed every quarter -El Moselhy: Prices of commodities subsidized by ration cards will be reviewed every quarter in line with the EGP\u2019s performance against the USD, Supply Minister Ali El Moselhy said yesterday, according to Bloomberg. It is clear when the ministry will introduce the\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":554196,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/23\/new-ration-card-eligibility-standards-coming\/","url_meta":{"origin":549980,"position":5},"title":"New ration card eligibility standards coming?","author":"enterpriseam admin","date":"23 December 2021","format":false,"excerpt":"Newly married individuals \u201cshouldn\u2019t\u201d be able to receive subsidy ration cards, President Abdel Fattah El Sisi said in televised remarks yesterday (watch, runtime 5:18). According to the president, if a couple that\u2019s about to get married or recently got hitched needs subsidies to get by, they shouldn\u2019t be getting married\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\/2021\/12\/467.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/549980","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=549980"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/549980\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/549976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/549981"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=549980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=549980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=549980"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=549980"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=549980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}