A man balances a tray of freshly baked bread while riding his bicycle in the old quarters of Cairo. AFP
A man balances a tray of freshly baked bread while riding his bicycle in the old quarters of Cairo. AFP
A man balances a tray of freshly baked bread while riding his bicycle in the old quarters of Cairo. AFP
A man balances a tray of freshly baked bread while riding his bicycle in the old quarters of Cairo. AFP

Flour cost reduction fails to lower bread prices in Egypt


Kamal Tabikha
  • English
  • Arabic

Egypt’s free-market bakeries, whose operations and prices differ from ones that sell subsidised bread, have not brought down the price of loaves for customers despite a significant drop in the price of flour.

The Egyptian government announced last month that it would be implementing a three-month price control mechanism to keep prices down and threatened fines to any bakers who sold their bread at a higher price.

But several bakers in Cairo told The National on Tuesday that they are not following the government's warning, and are instead basing their prices on the market, setting up a potential showdown with the authorities.

The government had attempted to bring down prices of bread by increasing its supplies of flour, after receiving an injection of cash from several international financing deals, bringing the price of flour down by between 15 and 25 per cent, depending on the flour’s quality.

The drop in flour price should have brought down the price of non-subsidised loaves by a similar amount, according to a Sunday television statement from Abdullah Ghorab, the head of the bakeries union at the Federation of Egyptian Chambers of Commerce.

Mr Ghorab promised that the drop in flour prices would be reflected in the price of loaves once the Eid Al Fitr break was over on Monday.

However, The National visited several bakeries on Tuesday and found that, across the board, the price of a loaf of free market bread, which is known as “tourists’ bread” on the Egyptian street, had not come down.

A number of bakers said they had no plans to lower prices despite repeated calls from Mr Ghorab's bakeries union, a private sector entity made up of industry leaders that works with the government to administer the country’s bakeries.

“I have not brought down the price of bread in my store because I am still baking it with flour purchased before prices came down. When I finish the batch I have, I will look into bringing down the price,” said Ali Hamed, 51, a baker in Cairo’s Hadayek Al Qubba district.

However, Mr Hamed refused to provide exact dates of his past flour deliveries or a date for when his customers can expect lower prices.

An Egyptian baker prepares 'Qatayef', a traditional pastry sold during Ramadan, at a bakery in Cairo, Egypt, last month. EPA
An Egyptian baker prepares 'Qatayef', a traditional pastry sold during Ramadan, at a bakery in Cairo, Egypt, last month. EPA

Tourists' bread vs subsidised bread

So-called tourists’ bread is not regulated in Egypt, which means different bakeries can sell differing weights per loaf and charge whatever price they see fit. Bakeries set prices based on a variety of factors such as what grade of flour they use and the wealth of their customers.

Prices of tourists' bread range from about 2.5 to 4 Egyptian pounds ($0.05 to $0.08) per loaf depending on neighbourhood.

Subsidised bread is sold at a fixed price and weight of five piastres ($0.001) per 90g loaf. It is purchased using state bread ration cards, which are held by 71 million people in a country of 106 million, according to the latest data from the country's supply ministry.

The supply minister closely monitors the supply and distribution of subsidised flour, reducing the scope for profiteering compared to tourists' bread.

“If a subsidised baker raises prices, he is affecting the country’s poorest which will become a problem for the government very quickly because the people who buy it are not going to accept any increases in price,” explained Gamal Hassan, 61, a baker who sells tourists' bread in Cairo’s Heliopolis district.

“The baker will be immediately arrested, fined and even jailed. This makes sense because it’s a clearer crime if a baker has received flour at subsidised prices and sells bread at market prices,” he said.

“However, my customers are people who have more disposable income and can afford to pay market price for bread so they won’t cause as many problems if prices are a little higher. Also I buy my own flour from the free market so the government is not going to feel robbed by me as much as it would with a subsidised baker,” he told The National.

An Egyptian baker arranges bread at a bakery in Cairo last year. EPA
An Egyptian baker arranges bread at a bakery in Cairo last year. EPA

Subsidised flour from the supply ministry is also lower quality than others on the market, according to Mr Hassan, who said he sells his loaves for 3 Egyptian pounds each because he only uses so-called “five star” flour, the highest quality flour available on the market that his more affluent customers have come to expect.

“Other bakeries use whatever flour they like and price their goods accordingly. But we mustn’t forget that flour is not the entire matter and bakeries pay different rent rates based on the neighbourhoods they are in, which have gone up over the past year across the board. You also have to consider the recent rise in gas prices last month which we can’t carry alone. It rose by over 20 pre cent,” Mr Hassan said.

Another baker, Khaled Hema, 38, explains that while he will not be bringing down the price of bread, he would be increasing the weight of loaves.

Mr Hema also said he views the latest drop in price as temporary, given that the price has been generally rising since 2022.

“Why would I bring down my prices this week when I know they will just raise flour prices next month and I will have to bring them up again?” he asked.

“What I will do is make a bigger loaf while flour prices are lower and when they inevitably go up again, I will return to smaller loaves. I don’t need the government to monitor me, I am responsible before God for my business,” he said.

A man buys breads at a popular market in Cairo. Reuters
A man buys breads at a popular market in Cairo. Reuters

Egypt’s supply minister Ali El Moselhi said on Sunday that a committee would be convened to address the price of tourists’ bread and that following the meeting, price and weight controls will be implemented to ensure no one is raising prices needlessly.

The Egyptian Cabinet approved in March amendments to the country’s law that tasked the supply ministry with implementing a three-month price control on tourists’ bread and toughened penalties on profiteering.

Prices of essential food items in Egypt have been on a steady decline since the announcement of several financing deals under which the government would receive $50 billion from international partners.

Inflation for March dropped to 33.3 per cent, down from 35.8 per cent the month before, according to the country's statistics agency (Capmas).

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Grand Slam Los Angeles results

Men:
56kg – Jorge Nakamura
62kg – Joao Gabriel de Sousa
69kg – Gianni Grippo
77kg – Caio Soares
85kg – Manuel Ribamar
94kg – Gustavo Batista
110kg – Erberth Santos

Women:
49kg – Mayssa Bastos
55kg – Nathalie Ribeiro
62kg – Gabrielle McComb
70kg – Thamara Silva
90kg – Gabrieli Pessanha

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
UNpaid bills:

Countries with largest unpaid bill for UN budget in 2019

USA – $1.055 billion

Brazil – $143 million

Argentina – $52 million

Mexico – $36 million

Iran – $27 million

Israel – $18 million

Venezuela – $17 million

Korea – $10 million

Countries with largest unpaid bill for UN peacekeeping operations in 2019

USA – $2.38 billion

Brazil – $287 million

Spain – $110 million

France – $103 million

Ukraine – $100 million

 

RESULTS

Manchester United 2

Anthony Martial 30'

Scott McTominay 90 6' 

Manchester City 0

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How being social media savvy can improve your well being

Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.

As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.

Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.

Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.

Torrena said that “most people believe that dieting and keeping fit is boring”.

However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.

“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.

People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.

The biog:

From: Wimbledon, London, UK

Education: Medical doctor

Hobbies: Travelling, meeting new people and cultures 

Favourite animals: All of them 

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says. 

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier. 

2019 Asian Cup final

Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi

THE TWIN BIO

Their favourite city: Dubai

Their favourite food: Khaleeji

Their favourite past-time : walking on the beach

Their favorite quote: ‘we rise by lifting others’ by Robert Ingersoll

BRIEF SCORES:

Toss: Nepal, chose to field

UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23

Nepal 132-7: Jora 53 not out; Zahoor 2-17

Result: UAE won by 21 runs

Series: UAE lead 1-0

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

 

 

Closing the loophole on sugary drinks

As The National reported last year, non-fizzy sugared drinks were not covered when the original tax was introduced in 2017. Sports drinks sold in supermarkets were found to contain, on average, 20 grams of sugar per 500ml bottle.

The non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.

Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.

Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
 

Not taxed:

Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.

ESSENTIALS

The flights 
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
 

The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.

Result

2.15pm: Maiden Dh75,000 1,950m; Winner: Majestic Thunder, Tadhg O’Shea (jockey), Satish Seemar (trainer).

2.45pm: Handicap Dh80,000 1,800m; Winner: Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

3.15pm: Handicap Dh85,000 1,600m; Winner: Native Appeal, Adam McLean, Doug Watson.

3.45pm: Handicap Dh115,000 1,950m; Winner: Conclusion, Antonio Fresu, Musabah Al Muhairi.

4.15pm: Handicap Dh100,000 1,400m; Winner: Pilgrim’s Treasure, Tadhg O’Shea, Satish Seemar.

4.45pm: Maiden Dh75,000 1,400m; Winner: Sanad Libya, Richard Mullen, Satish Seemar.

5.15pm: Handicap Dh90,000 1,000m; Winner: Midlander, Richard Mullen, Satish Seemar

Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

Based: Dubai, UAE

Sector: Laundry

Employees: 170

Funding: about $8m

Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

Ponti

Sharlene Teo, Pan Macmillan

Champions League Last 16

Red Bull Salzburg (AUT) v Bayern Munich (GER) 

Sporting Lisbon (POR) v Manchester City (ENG) 

Benfica (POR) v Ajax (NED) 

Chelsea (ENG) v Lille (FRA) 

Atletico Madrid (ESP) v Manchester United (ENG) 

Villarreal (ESP) v Juventus (ITA) 

Inter Milan (ITA) v Liverpool (ENG) 

Paris Saint-Germain v Real Madrid (ESP)  

Under 19 World Cup

Group A: India, Japan, New Zealand, Sri Lanka

Group B: Australia, England, Nigeria, West Indies

Group C: Bangladesh, Pakistan, Scotland, Zimbabwe

Group D: Afghanistan, Canada, South Africa, UAE

 

UAE fixtures

Saturday, January 18, v Canada

Wednesday, January 22, v Afghanistan

Saturday, January 25, v South Africa

THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A
Updated: April 16, 2024, 3:28 PM