The Egyptian government, led by Prime Minister Mostafa Madbouly, has introduced a package of measures to mitigate increasing food prices ahead of Ramadan.
The new measures are introduced to ease rapid inflation.
According to the government data, 35 per cent of Egypt’s inflation rate is
related to external factors. Egypt reportedly imports 80 per cent of its wheat
from Russia and Ukraine. Egypt is facing pressure from the surge of wheat
prices in the global market.
Madbouly said last week that some food items including wheat
and poultry products in Egypt have witnessed a drastic surge in prices because
of the Russia-Ukraine war.
PM Madbouly said that the government reserved basic food
products for six months at reasonable prices. Madbouly confirmed that Egypt has
enough wheat reserves to last till the end of 2022.
Reportedly, the government will also expand the distribution
of the street stalls for selling subsidized essentials. The promotion campaigns
for raising awareness about rationalising consumption is also on the agenda of
the government.
Mohamed Mostafa, an economic expert, told Xinhua news
agency, “The rise of prices in Egypt is part of an inflation wave that is
hitting the world.” The government is reportedly trying to contain the current
inflation wave by selling essential goods at lower prices and securing the
stocks of the commodities.
The government announced on Sunday that a total of 189,000
tonnes of wheat from Russia, Ukraine, and Romania will reach Egypt in the
coming days. On Saturday, Egypt imposed an export ban on cooking oil, corn, and
all kinds of cracked green wheat for three months to secure citizens’ needs for
basic commodities.
Ramadan will start in early April and the government has
introduced measures to mitigate the rate of consumption of food products.
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