Egypt To Penalize Bakeries Delaying Subsidized Bread Cost Payments

(MENAFN- Daily News Egypt) The General Authority for supply commodities (GASC) in Egypt has announced it will penalize subsidized bakeries operating with natural gas that fail to pay the differences in bread production costs promptly.

According to a statement released by GASC on Saturday, bakeries that do not adhere to the payment schedule will face a penalty of 25% interest on outstanding debts.

This measure is in accordance with a ministerial decision issued in August 2024. In addition to the interest, non-compliant bakeries will also have their subsidized bread quota reduced by 25%.

GASC emphasized the importance of timely payments to maintain the integrity of the subsidized bread system and protect the rights of all stakeholders.

The authority also stated that it has compiled lists of bakeries that have not met their payment obligations and has distributed these lists to supply directorates nationwide. These directorates will now begin implementing the penalties outlined in the ministerial decision.

GASC is urging all subsidized bakeries using natural gas to expedite the settlement of any outstanding debts related to bread production cost differences to avoid incurring these penalties. The authority aims to ensure a fair and efficient subsidized bread programme by enforcing these regulations.

Two-thirds of Egyptian families or around 70 million Egyptians benefit from the bread subsidy in the country. Egyptians rely heavily on bread as a food staple.

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