Latest news with #GeneralAuthorityforSupplyCommodities
CairoScene
09-03-2025
- Business
- CairoScene
Bakeries Delaying Subsidised Bread Cost Payments to Be Penalised
Non-compliant bakeries will also have their bread quota subsidised by 25%. Mar 09, 2025 Bakeries operating with natural gas and failing to pay the differences in bread production will be penalised, according to an announcement by the General Authority for Supply Commodities (GASC). Bakeries that do not adhere to their scheduled payments will now face a penalty of 25% on all their outstanding debts. Interest penalties aside, non-compliant bakeries will also have their subsidised bread quota reduced by 25%. The GASC has stated that they have compiled an official list of bakeries that have yet to make their payments and have distributed said list to directorates nationwide. Over two-thirds of Egyptian families benefit from the bread subsidy in the country.
Daily News Egypt
08-03-2025
- Business
- Daily News Egypt
Egypt to penalize bakeries delaying subsidized bread cost payments
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.
Zawya
07-03-2025
- Business
- Zawya
Egypt's new military-run grain buyer pushing up local prices, traders say
CAIRO: Egypt's decision to shift its wheat import programme to a military-affiliated entity around four months ago has been anything but smooth as local prices climb and stock levels fall, traders in the country said. Egypt, one of the world's largest wheat importers, previously relied on the General Authority for Supply Commodities (GASC) to conduct large-scale international tenders, securing supplies with long-standing financing agreements. However, in December, the government transferred this role to Mostakbal Misr, an entity that until that moment was only known to be the development arm of the Egyptian Air Force. It has not said why the change was made. The success of its wheat import programme is absolutely critical for Egypt which distributes subsidised bread to tens of millions of its people providing a lifeline in a country facing a cost-of-living crisis with record-high inflation. Traders said the switch has transformed Egypt from one of the most transparent wheat buyers to a much more secretive one. Instead of buying wheat directly from global markets in publicly announced tenders, Mostakbal Misr has largely sourced it from local Egyptian importers, who primarily procure from Russia, traders said. According to three traders, Russian suppliers have been hesitant to engage with Mostakbal Misr, citing its lack of experience in commodity trading. Instead, one trader said that global and Russian suppliers prefer to engage with experienced Egyptian importers rather than military organisations with no history in the trade. This shift has contributed to a 10% rise in domestic wheat prices, as Mostakbal Misr's purchasing model has increased demand in the local market, traders said. According to two traders, representatives of Mostakbal Misr are present at ports and agricultural offices to oversee incoming shipments, with negotiations taking place at Mostakbal Misr's headquarters to take part or all of the cargo. Despite buying from the local market and paying local suppliers in Egyptian pounds, two traders told Reuters that Mostakbal Misr charged the state in U.S. dollars and still relies on GASC to manage financing arrangements, adding another layer of complexity. The Egyptian Supply Ministry did not immediately respond to a request for comment. Meanwhile, wheat reserves have declined and now cover just five months of consumption, which includes future deliveries, down from seven months in mid-2024. Since taking over, Mostakbal Misr has signed contracts for 2.7 million metric tons with Egyptian suppliers, including 1.7 million tons for February and March delivery, one trader with knowledge of the matter said. Around 850,000 tonnes have been delivered so far, he noted. He said around 1.7 million tons were bought using 270-day letters of credit, while 900,000 to one million tons were purchased with funding from the International Islamic Trade Finance Corporation (ITFC), which lends Egypt hard currency to secure grain purchases. In both cases, Mostakbal Misr still had to rely on GASC to manage the purchases, he added, noting that financial backers, such as the ITFC and the European Commission have not yet embraced the change in purchasing agency. Both the ITFC and the European Commission recently signed agreements to support Egypt's grain imports through GASC and not Mostakbal Misr. A trader questioned the current financial processes, asking why GASC is receiving funds from foreign lenders if Mostakbal Misr is handling grain imports exclusively. (Reporting by Mohamed Ezz; editing by David Evans)
Zawya
05-02-2025
- Business
- Zawya
Egypt's GASC signs $700mln ITFC loan deal to bolster food security
CAIRO: Egypt's General Authority for Supply Commodities (GASC) has signed a $700 million loan agreement with the Islamic Trade Finance Corporation (ITFC) to bolster its food security efforts, an Egyptian cabinet statement showed on Tuesday. The loan from is part of ongoing cooperation between Egypt and the Saudi organisation, which has played a key role in helping Egypt to secure staple foods such as wheat as well as energy supplies. ITFC has also earmarked an $800 million loan for the Egyptian General Petroleum Corporation to support the country's energy needs. However, GASC's precise role remains unclear since the government's decision last year to transfer strategic wheat procurement responsibilities to Mostakbal Misr, a state entity established in 2022. The shift in responsibilities has raised concerns among market observers. One of the world's largest wheat importers, Egypt relies heavily on foreign grain to sustain its subsidised bread programme, which serves 70 million people. Egypt's strategic wheat reserves have dwindled to enough for only four months, down from seven months of stock in mid-2024. (Reporting by Mohamed Ezz Editing by David Goodman)
