Egyptians fear cash subsidies would send prices soaring

Egypt's proposed cash subsidies system has raised concerns among citizens despite its numerous advantages, in light of the lack of market supervision over product prices and availability.
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Egyptians crowd to submit petitions to remain on the state's food subsidy programme, under a sign showing the new rules for exclusion, Cairo, Egypt, March 28, 2019. - REUTERS/Nadine Awadalla
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David Awad
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CAIRO — Many Egyptians, especially the poor, are concerned by the government’s apparent intention to replace food ration cards with cash subsidies. The Council of Ministers has said it is considering the change, but has yet to unveil the details of its discussions.

In a Jan.14 interview on DMC News, Egyptian Minister of Supply and Internal Trade Ali Moselhi expressed his ministry's preference for the cash payments program. He said cash subsidies aim to increase the system's efficiency and will not reduce the value of subsidies in any way. 

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