The Egyptian government has officially launched a nationwide initiative to reduce the prices of essential commodities on Tuesday 5 August.
Announced by Minister of Supply and Internal Trade Sherif Farouk, this initiative is a response to directives from Prime Minister Mostafa Madbouly; it aims to provide discounts of up to 18 percent on high-demand food items, such as meat, poultry, sugar, rice, cooking oils, tea, and pasta.
During a recent meeting with representatives from the Federation of Egyptian Chambers of Commerce and major retail chains, Cairo Chamber Chairman Ayman El-Ashry highlighted thattraders and suppliers were ready to lower their profit margins voluntarily.
This cooperation between The federation of Egyptian Chambers and major retail chains is designed to ensure that citizens can access essential goods at more affordable prices without sacrificing quality.
“This initiative represents a timely and strategic response to current market pressures,” El-Ashry noted.
To support this initiative, the government will streamline supply chains and reduce the number of intermediaries involved in the distribution of goods. This approach is expected to stabilize prices and enhance the availability of discounted items across all governorates.
The Ministry of Supply has already reported successful reductions in the prices of key commodities like sugar and cooking oil compared to the previous year, attributing these changes to improved supply and enhanced cooperation within the trade sector.
Minister Farouk reaffirmed the government’s commitment to balancing market freedom with consumer protection, pledging ongoing regulatory support for private sector stakeholders.
Additionally, sugar and flour prices in Egypt rose due to the pound’s devaluation, making imports more expensive.
Global supply disruptions from the Russia–Ukraine war also drove up wheat and sugar costs.
In recent years, Egypt’s exported commodities have shown consistent growth in prices. In Q1 2024, they rose by 5.3 percent, reaching USD 9.6 billion compared to USD 9.1 billion (EGP 465 billion) in Q1 2023.