Around 18 million families, more than 65 million Egyptians, are eligible for subsidised food commodities. Under the new distribution system, ration-card holders can buy some 20 different commodities at subsidised prices, but there are problems with distribution and other shortcomings. Introduced in July, the new system is supposed to increase choice and efficiency. But the system is not working as well as shop owners and consumers would like. Deliveries of groceries are sometimes late, there are shortages of some food items, and meat and poultry stocks are sometimes ruined because of a lack of refrigeration. All of July's rationed commodities and 85 per cent of those for August were successfully distributed, Ministry of Supply spokesman Mahmoud Diab said. But some 5,000 shopkeepers have nevertheless threatened to withdraw from the system. According to the new system, each citizen receives LE15 worth of a list of 20 subsidised commodities at no cost. Maged Nadi, a spokesman for the shopkeepers, said that the government sent only some of the 20 items to the stores, leading to tensions between shop owners and consumers. The new system also includes subsidised baladi bread. A family, using a smart card, is guaranteed five loaves a day. If the family doesn't want the entire bread quota, points can be accumulated and used to receive other food items. However, this too has caused problems. The Ministry of Supply is supposed to inform shop owners of unused points at the end of each month, but many consumers have not understood the way the system works and have not been willing to wait for the end of the month before redeeming their points. Emad Abdeen, vice-chairman of the groceries division at the Federation of Chambers of Commerce, said that grocery stores cannot simply opt out of the system. “Their profit has increased hugely under the new system,” he said. There are 25,000 authorised grocery stores registered in the system, most of them concentrated in Cairo and surrounding districts. There have also been complaints from consumers in Upper Egypt that they have not been able to access their quotas of subsidised commodities, possibly due to the high cost of transport. “The Ministry of Supply should transport commodities from its stores in Cairo to distant governorates. They could use trucks from the state-owned Trade and Distribution Company,” Abdeen said. However, Abo Rabea, a vegetable vendor, told the Weekly that because of the new system he has been able to access better-quality commodities. Another customer, however, a teacher called Entesar, said that items are only available in smaller quantities. “The quota of cooking oil under the old system used to be enough to cover my needs for the month, but with the new system I am limited to smaller quantities that last for only half the month,” she said. Another concern is the fact that LE15 might not be enough to cover the cost of many goods as inflation is on the rise. Last week, Minister of Supply Khaled Hanafi said that the government is considering increasing the cash allowance it makes for rations in order to meet the inflationary pressures. The consumer price inflation rate for July was recently revised upwards from 10.6 to 11.04 per cent due to the recent increase in energy prices.
