Egypt will expand its new cash subsidy system to cover more essential food items, the Cabinet said on Wednesday. The move will broaden a programme that currently provides only a few subsidised staple foods to millions of Egyptians.
Under Egypt’s existing ration card system, which supports about 60 million people, each beneficiary receives 50 Egyptian pounds ($1) per month. The money can be spent on a limited range of subsidised goods at state-approved outlets.
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At the same time, about 70 million people benefit from a similar scheme that provides subsidised bread. Egypt imports between 4 million and 5 million metric tonnes of wheat each year to support the programme.
The Cabinet said the new system would move away from fixed food allocations and give households more freedom to choose what they buy. Beneficiaries would receive the cash value of the subsidised goods instead.
Supply Minister Sherif Farouk said the change would address some of the problems with the existing system, including limited consumer choice and losses during distribution.
He added that citizens would receive the cash value of the goods, giving them greater purchasing power.
