Egypt's ICT sector a government priority, creating 70,000 new jobs, says PM    Egypt's SCZONE, China discuss boosting investment in auto, clean energy sectors    Tensions escalate in Gaza as Israeli violations persist, humanitarian crisis deepens    Egypt, India explore cooperation in high-tech pharmaceutical manufacturing, health investments    Egypt, World Bank explore expanded cooperation on infrastructure, energy, water    Egypt, Sudan, UN convene to ramp up humanitarian aid in Sudan    Egypt, China's Jiangsu Fenghai discuss joint seawater desalination projects    Egypt's FRA issues first-ever rules for reinsurers to boost market oversight    LLC vs Sole Establishment in Dubai: Which is right for you?    French court grants early release to former President Nicolas Sarkozy    Egypt releases 2023 State of Environment Report    Egyptians vote in 1st stage of lower house of parliament elections    Egypt's Al-Sisi, Russian security chief discuss Gaza, Ukraine and bilateral ties    Grand Egyptian Museum welcomes over 12,000 visitors on seventh day    Egypt's private medical insurance tops EGP 13b amid regulatory reforms – EHA chair    400 children with disabilities take part in 'Their Right to Joy' marathon    Egypt repatriates 36 smuggled ancient artefacts from the US    Grand Egyptian Museum attracts 18k visitors on first public opening day    'Royalty on the Nile': Grand Ball of Monte-Carlo comes to Cairo    Egypt, Albania discuss expanding healthcare cooperation    VS-FILM Festival for Very Short Films Ignites El Sokhna    Egypt's cultural palaces authority launches nationwide arts and culture events    Egypt launches Red Sea Open to boost tourism, international profile    Qatar to activate Egypt investment package with Matrouh deal in days: Cabinet    Hungary, Egypt strengthen ties as Orbán anticipates Sisi's 2026 visit    Omar Hisham Talaat: Media partnership with 'On Sports' key to promoting Egyptian golf tourism    Egypt establishes high-level committee, insurance fund to address medical errors    Sisi expands national support fund to include diplomats who died on duty    Madinaty Golf Club to host 104th Egyptian Open    Egypt's PM reviews efforts to remove Nile River encroachments    Al-Sisi: Cairo to host Gaza reconstruction conference in November    Egypt will never relinquish historical Nile water rights, PM says    Al-Sisi, Burhan discuss efforts to end Sudan war, address Nile Dam dispute in Cairo talks    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Mission: get bread
Published in Al-Ahram Weekly on 13 - 03 - 2008

Despite government efforts, the bread crisis is escalating. Mona El-Fiqi stands in line
The government has started applying new measures to regulate the sale of subsidised bread, including raising flour quotas in high population governorates, separating the processes of bread production and distribution, and enforcing strict penalties on the sale of subsidised flour on the black market. But bread queues continue to grow longer and people still cannot readily find this staple food.
For many years, different types of bread at various prices have been available on the market. One could buy a loaf of subsidised baladi (traditional) bread at PT5, while a bigger and better loaf of baladi was sold at PT10-25. Moreover, thin baguette-like feeno bread -- a favourite for school sandwiches -- was also affordable at PT10 a loaf. Today, people complain that it has become a mission impossible to buy their needs of bread.
Long queues in front of bakeries, particularly those selling subsidised bread, have become commonplace. "I have to stand in line for hours to buy 10 loaves of subsidised baladi bread," complained housewife Amany Mohamed. "It is unfair that we have to endure this hardship to get our needs of bread, the basic food in my family's three meals." To avoid the long wait, Mohamed attempted to buy unsubsidised bread at PT25 a loaf, but the owner of the bakery refused to sell the bread to individuals because his main clients are restaurants.
Sayed Ali, a civil servant and father of three, thought that if he went to the bakery before daybreak he will be served immediately. "After dawn prayers, I was surprised to find 10 people already queuing up in front of me," recounted Ali. When all his schemes and ploys failed, he asked one of his relatives to buy bread for him to avoid being late for work while waiting in line every day.
In response to continued complaints and the gravity of the scarcity of bread, the cabinet met on 6 March to discuss the problem and reconsider the quota of every governorate. During the meeting, Prime Minister Ahmed Nazif urged that the issue of bread production and distribution should be decentralised. Hence, governors are now responsible for distributing the flour quota for their governorate and the establishment of new bakeries according to local needs.
While Minister of Social Solidarity Ali Moselhi decided to raise the quota of the subsidised flour by 18,700 tonnes in seven high population governorates, the cabinet decided to widely apply separating the processes of bread production and distribution. Bakeries no longer sell bread, but are required to deliver their quota of loaves made with subsidised flour to a committee from the Ministry of Social Solidarity. The bread is then delivered to outlets affiliated to a company responsible for selling it.
The ministry announced that bread production and distribution were separated in 6 October City and the districts of Helwan and Zeitoun three weeks ago. According to Yehia Mahmoud, Moselhi's press counsellor, this strategy will be applied in 18,000 bakeries across the country to reduce bread queues and control illegal trading in subsidised flour provided to bakeries.
Mahmoud explained that the bread crisis is a result of the rising price of wheat on the international market, which in turn raises the prices of all flour products such as baladi bread, feeno bread and pasta. "People prefer buying bread since it's cheaper than pasta," he continued, saying that the price of 20 loaves of subsidised bread is less than the price of 250 grammes of pasta.
Moreover, the huge difference between the price of subsidised flour and its market price tempts some bakery owners to sell their quota on the black market for huge profit. The price of a 50kg sack of subsidised flour is LE8, while its market price is LE100. This leads to shortages of subsidised bread in their districts, stated Mahmoud. He admitted, however, that there are discrepancies in the number of bakeries in various districts. "There could be 22 in one district and one or two bakeries in another," he said, "which leads to shortages in some places and an opportunity to sell subsidised flour at market prices in other districts." Therefore, the ministry is reconsidering the distribution of bakeries and flour quotas to ensure fairer representation across the map.
According to a contract signed between the Ministry of Social Solidarity and the Division of Bakery Owners (DBO) at the Cairo Chamber of Commerce in September 2006, an owner who does not follow regulations or sells his quota on the market will pay a fine between LE7,500 to LE100,000. On the other hand, an owner who does not violate regulations for six months will be rewarded with LE5 per sack of flour he produces. More than LE2 million have been paid in rewards, according to Mahmoud, while fines have amounted to LE132 million -- of which LE54 million remain to be collected.
DBO Chairman Farag Wahba agreed that the increase in wheat prices worldwide and the high cost of bread alternatives such as rice and pasta, have led to crowding in front of bakeries selling subsidised bread. Meanwhile, unsubsidised baladi bread is sold at PT30-60 a loaf which is unaffordable for the majority of the people, stated Wahba. But he also feels that subsidised bread is sometimes wasted, for example in the countryside when it is fed to the fowl and farm animals due to its cheap price.
While Wahba believes that the measures taken by the government to separate distribution from production will be successful, other experts also praised the government's move to decentralise the bread problem.


Clic here to read the story from its source.