Egypt increases price of subsidized bread for the first time since 1989: Implications for nutrition and food security

By Nina Jovanovic and Joseph Glauber

August 7, 2024

In June 2024, the Egyptian government raised the price of subsidized traditional baladi bread to 20 piastres ($0.004)¹ per loaf-quadrupling the old price of 5 piastres. The change-the first such increase since 1989-was triggered by a number of factors: Egypt's heavy reliance on wheat imports due to limited arable crop base and growing population, along with high global wheat prices amid the Russia-Ukraine war, combined with the weakening of Egyptian pound (EGP) against the U.S. dollar in March 2024 and government efforts to reduce public spending.

Bread prices have long been a sensitive political issue in Egypt. In 1977, President Anwar Sadat cut the subsidies, triggering protests known as the "bread intifada"-ultimately forcing him to roll back his subsidy reform. In 2011, Egyptians took to the streets protesting the regime of President Hosni Mubarak with slogans calling for "bread, freedom, and social justice." In 2017, Egyptian Ministry of Supply proposals to reduce the state-sponsored provision of bread from up to 4,000 to 500 loaves per bakery provoked large-scale protests across the country.