DEVELOPMENT: Egyptians Struggle to Feed Their Families

By Cam McGrath Reprint | | Print |

Cam McGrath

CAIRO, May 27 2004 (IPS) - Putting food on the table is becoming increasingly difficult for Egyptian families as prices skyrocket.

"Buying food for a family has never been so difficult," says housewife Mona Fahmy. "Every time I shop the prices have gone up, but my husband’s salary never changes."

The Egyptian pound has fallen 35 percent against the dollar since the Central Bank floated the currency in January 2003. The pound was previously pegged to the dollar to keep inflation in check.

The Egyptian pound’s rapid devaluation has caused prices to skyrocket. A government report presented to parliament last month indicated that prices of basic commodities have risen more than 60 percent since the currency float.

Egypt is one of the world’s largest food importers and "is vulnerable to changing world market prices, especially of wheat and sugar," says economist Magdy Sobhi.

Rising prices and domestic wheat shortage have seen the return of bread lines for the first time in years. Consumers protested when state-run bakeries reduced the size of subsidised bread loaves to avoid raising prices.

"Bread has always been a sensitive issue," Sobhi told IPS. "When the government raised the price of bread in 1977 there were riots in Cairo and Alexandria. It’s safe to say the government doesn’t want to do that again."

Magda Ismail, a widowed house cleaner and mother of four earning the equivalent of 100 dollars a month says about 80 percent of her income goes into buying food. "Even a small increase in prices is a disaster for my family."

The Egyptian government allocated nearly 500 million dollars in 2003 to subsidise 25 basic food items as part of its social welfare net. Earlier this year it earmarked an additional 250 million dollars to cover the increased cost of these staple goods.

The government also allocated 550 million dollars to finance a revised ration card system. The new programme allows citizens with ration cards to purchase seven basic food items at reduced prices at state-run cooperatives. The commodities include sugar, rice, fava beans, lentils, tea, margarine and macaroni.

"We have issued nine million ration cards to serve 39 million citizens," Mohammed Yehia, director-general of ration cards told IPS.

Public sector employees receive full subsidies while private sector employees receive partial subsidies, he said.

Critics of the programme argue that many needy families are excluded. Complex and seemingly arbitrary regulations prevent many ration card holders from using them.

A ministerial decree states that ration cards issued before July 2002 cannot be renewed. In addition, children born after 1988 are ineligible.

"Maybe there are nine million cards out there, but the cooperatives won’t accept them," said one ration card holder. "I was told I couldn’t use my card because my parents hadn’t renewed theirs."

State officials say new ration cards were issued to eligible families earlier this year, and no more would be given out.

"The ministry will not issue new ration cards, and no new-born will be added to the ration cards," newspapers quoted minister of supply Hassan Khedr as saying.

Some citizens complained they were unfairly excluded because they applied late for a new card.

"I went to get a new card from the ministry of supply office, but they told me that there were no ration cards left," said Nadia Abdel Aziz, a housewife with one child. "They told me to come back after one year."

Ration cards were introduced in the mid-1960s as part of a broader social welfare programme, but gradually phased out in the 1990s to include just sugar and cooking oil. Many families stopped using their cards as the savings became insignificant.

"The old ration cards were already out of use," Nadia said. "Everybody I know threw away the old cards because they no longer worked."

But even those who have valid ration cards are facing difficulty as shelves at many cooperatives are empty. Subsidised tea, lentils and fava beans are reportedly in short supply.

"There are some distribution problems, but we should have it sorted out by June," said Mohsen Amin, a clerk at a cooperative. "This is normal in any new system."