Jordan modifies bread subsidy mechanism

05/02/2018,

In a move that significantly increased subsidized bread prices for the first time since 1996, the Government replaced its broad bread subsidy program with a targeted assistance system, setting new price caps for bread, effective from 1 February. The new mechanism will deliver in 2018 cash support of USD 241 million to approximately 6.2 million people in the country, which will be paid out through an electronic benefit transfer card. The Government will continue to set upper limits on price of bread, but will no longer directly subsidize the product to bakeries. The new upper limit for bread prices are 67 percent higher for small pita loaves at JOD 0.4 (USD 0.56) per kg, 100 percent for large pita loaves at JOD 0.32 (USD 0.45) per kg, and 94 percent higher for Arabic bread (mashrouh and tabou) at JOD 0.35 (USD 0.49 per kg). The other types of bread and flour-based sweets were not subsidised. The measure aims to reduce public spending and food waste.

Country: Jordan