Egypt food subsidy cuts hit 850,000 people

Egypt has removed 850,000 people from its food subsidy system since June, the supply ministry says, leaving some families paying far more for bread during a wider cost-of-living crisis.

The cuts are part of reforms to one of the world's largest food subsidy programmes as Egypt pursues International Monetary Fund-backed economic changes. Officials say only people deemed undeserving will be excluded.

Egyptian flatbread is a staple of daily meals, and the government says about 66 million people rely on subsidised bread. One Cairo mother of four, Eman Abdel Fattah, said her family's bread costs became 10 times higher after its subsidy card was suspended in July.

Several families in Cairo's El-Marg district said they were cutting food purchases or eating less so children could eat. Siham Abdel Qawi, a 40-year-old homemaker, said her family had given up fruit, animal protein and sweets.

Abdel Qawi and Abdel Fattah said they lost their family cards after enrolling children in low-cost private schools. Former supply ministry official Hisham Kamel said such school fees may reflect sacrifices by families rather than comfortable finances. The government says only elite international schools justify exclusion.

Schooling is one of several indicators used to decide eligibility, along with asset ownership, electricity bills and income. A supply ministry spokesman said thousands of people have appealed subsidy removals.

Egypt's food subsidy bill was $3.2 billion last year. The government is due in January to begin shifting the card system to direct cash assistance.