The Government announced that as of August it will stop providing subsidies to millers and bakeries that produce subsidized bread. Under the current system, the Government subsidizes flour and bread production, besides subsidizing the final sale of bread. From August, transactions between the state-run buyer and millers, as well as between millers and bakers, would be done at market prices. However, bread will still be sold at a subsidized price of EGP 0.05 per loaf (USD 0.03 per loaf), well below its production cost, which increased sharply after the strong depreciation of the local currency and the partial lifting of fuel subsidies. The Government pays the bakers the difference. Each subsidy card holders is allowed 150 loaves per month or 5 loaves per day. Egypt remains the world’s largest wheat importer and the measure is expected to reduce imports, while easing public expenditures.