GASC to Penalize Bakeries for Delayed Payments in Subsidized Bread Program

The General Authority for Supply Commodities (GASC) in Egypt will penalize subsidized bakeries not promptly paying production cost differences. Non-compliance will result in a 25% interest on debts and a reduction in bread quotas. These measures aim to sustain the integrity of the subsidized bread program that serves 70 million Egyptians.

The General Authority for Supply Commodities (GASC) in Egypt has announced that penalties will be imposed on subsidized bakeries utilizing natural gas that delay payments related to bread production costs. This decision, communicated through a statement on Saturday, stipulates a 25% interest charge on any outstanding debts for bakeries failing to adhere to the payment schedule.

In line with a ministerial decision from August 2024, non-compliant bakeries will see a reduction of 25% in their subsidized bread allocation. GASC underscored the necessity of timely payments to uphold the integrity of the subsidized bread system and safeguard the rights of all involved parties.

The authority has created a comprehensive list of bakeries that are not fulfilling their payment obligations, which has been disseminated to supply directorates across the nation. These directorates are tasked with enacting the penalties specified in the recent ministerial action.

GASC is calling on all subsidized bakeries using natural gas to promptly clear any outstanding debts related to bread production costs to avoid incurring penalties. The overarching goal is to maintain a fair and efficient subsidized bread program. Approximately two-thirds of Egyptian families, or around 70 million individuals, benefit from this bread subsidy, which is a crucial part of their diet.

In concluding remarks, GASC’s measures emphasize the seriousness of timely payments within the subsidized bread scheme, highlighting a system that affects a substantial portion of the Egyptian population. The penalties for delayed payments underscore the administration’s commitment to maintaining a fair distribution of bread, which is essential to many families in Egypt.

Original Source: www.dailynewsegypt.com