Egypt Fixes Price Of Bread As Ukraine War Hits Wheat Supply | Egypt

Newspaper Title: https://vervetimes.com/

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Monday - 21 March 2022

Egypt has fixed the price of unsubsidised bread amid a global surge in wheat prices since Russia’s invasion of Ukraine.

The move comes after war shut off access to cheaper wheat from the Black Sea region, particularly affecting exports to the Middle East and north African region. Egypt is the world’s biggest wheat importer, bringing in about 60% of its grain from overseas. Russia and Ukraine accounted for 80% of the country’s imports last year.

The Egyptian prime minister, Mostafa Madbouly, set the price of commercially sold bread at 11.50 Egyptian pounds a kilo on Monday, which is 49 British pence. The new fixed price for flat, round balady bread weighing 90g has been set at 1.00 Egyptian pounds.

Concern about supplies of wheat had already pushed up the price of bread, which is a food staple in Egypt, by as much as a quarter is some bakeries, to 1.25 Egyptian pounds a loaf, while flour prices were up about 15%, Attia Hamad from the Cairo chamber of commerce told Reuters.

Steep rises in food prices have previously caused political unrest in Egypt and other countries including Bangladesh and Indonesia. In 2007 and 2008, shortages caused by droughts in key wheat and rice-producing countries and a surge in energy costs led to riots in more than 40 nations around the world.

Last week, the UN Food and Agriculture Organization warned there was a danger of severe hunger, as the war in Ukraine threatened supplies of key staple crops.