The government has often accused bakeries of selling subsidised flour on to the black market rather than using it to produce bread. "Some bakery owners are calling strikes and sit-ins in hopes of seeing the new system fail, so that the old system – which allowed them to sell large amounts of flour on the black market – would be maintained," Nasser El-Farrash, advisor to the supply minister, said recently.

The Egyptian government has traditionally kept local bread prices down by both importing and purchasing massive amounts of locally-produced wheat and supplying state-sponsored bakeries with flour to produce needed quantities of bread.  Local bread prices have remained unchanged since the 1980s due to a policy of frequent government intervention to stabilise subsidised bread prices. Until now, the local price for a loaf of bread remains about 5 piastres. 

Though economics professor Mohsen Hassen echoed Zarouk’s assertion that increasing fuel prices will negatively affect consumers, he said the government’s decision was justified in order to salvage the country’s economy. Hassen told Tunisia Live that the budget deficit grew by 12.6% since the revolution; in 2012, alone it rose by 6.6%. “It is extremely dangerous that the deficit keeps growing,” Hassen said. “That’s why better management of subsidies funding is crucial.” Goods are generally subsidized in order to preserve consumer purchasing power, especially for citizens with low incomes. “Only 12% of the poor are benefiting from the fund…” he stated, adding that a larger proportion of Tunisians with high incomes are the ones gaining the most from subsidies. “Subsidies are serving those who don’t need them most,” Hassen said. “That’s the dilemma that was unveiled by the revolution thanks to transparency in statistics.”

Egypt normally buys strategically to ensure that it has wheat stocks equal to at least six months' consumption in its silos. It relies heavily on imports to feed its 84 million people; half of the wheat they consume is imported."This is lower than they historically have carried in the past," a European trader said, commenting on the new figures. Shipments expected from the United States in the coming weeks will help maintain the current levels, the trader added."However, I think Egypt's private buyers or GASC need to buy an additional 800,000 to 1 million tonnes of wheat for shipment before the end of May when their local crop becomes readily available, to keep an adequate level of stocks."

weak Egyptian pound has pushed up the cost of wheat imports paid for in dollars