Cairo, Egypt (CNN) - On Thursday, the Egyptian government began implementing an initiative to reduce the prices of basic commodities through about 280 outlets in various governorates, with the list of included products rising from 12 commodities upon launch to 30 commodities by the end of September.
The initiative continues until March 2027, in conjunction with plans to expand the outlet network, involve the private sector, and increase supply to reduce price pressures.
"Strategic stock is stable"
The head of the Foodstuffs Division at the Giza Chamber of Commerce, Hisham El-Dagwi, said that the Egyptian market has a stable strategic stock of basic commodities, and does not suffer from a shortage of products, considering that the current move mainly aims to increase availability and expand the reach of goods to citizens.
Al-Dajwi added that about 280 outlets began participating in the first phase, with new outlets continuing to open, explaining that the trend aims for the outlets to reach various villages and centers, so that discounted goods are available near citizens.
The initiative comes within a larger plan of the Ministry of Supply and Internal Trade aimed at increasing supply, expanding the sales network, and reducing the intermediate links between producer and consumer, in addition to strengthening market supervision and providing more space for private sector participation.
The initiative will continue for 6 months, including the month of Ramadan, and begins with 12 basic commodities, with 18 more commodities being added during September, bringing the total products to 30 commodities.
The first stage includes packaged white sugar at 25 pounds per kilogram ($0.49), 700 ml of blended oil at 50 pounds ($0.97), 350 grams of pasta at 9 pounds ($0.18), and packaged rice per kilogram at 25 pounds ($0.49), in addition to tomato sauce, tea, white cheese, halva, flour and jam, at reduced prices.
Among the commodities scheduled to be added during this month are tuna, salt, mussels, yogurt, beans, cowpeas, lentils, vinegar, chicken broth, biscuits, washing powders, soap, and dishwashing liquid. The Holding Company for Food Industries and its subsidiaries are also responsible for managing the goods and pumping the necessary quantities into the participating outlets, while following up on withdrawal, inventory, and resupply rates according to the size of the demand, in order to ensure the continued availability of the products.
"No forced pricing"
Al-Dajwi believes that increasing supply is the main factor in influencing prices, explaining that the government does not depend on imposing forced pricing on the private sector and commercial chains, but rather on creating competition by increasing availability.
Al-Dajwi said, in exclusive statements to CNN Arabic, that the multiplicity of entities that offer goods, including the Ministry of Supply represented by the Holding Company for Food Industries, the Ministry of Agriculture, and the Ministry of Interior through “Aman” outlets, in addition to the private sector, increases the options for the consumer and limits the opportunities for monopoly.
Al-Dajwi added that offering the commodity at a low price in government outlets creates competitive pressure on other outlets, as the consumer will go to the outlet that offers the lowest price, which prompts other merchants to offer close prices to maintain their ability to compete.
In parallel with the initiative, the Ministry of Supply aims to expand “Carry On” outlets, by opening new outlets and converting a number of “Jamiati” outlets and ration outlets to the new model, while supplying them with free goods.
Al-Dajwi said that the “Carry On” system aims to reach about 40,000 outlets of supply merchants and “My Association,” thus expanding the scope of availability significantly compared to the current stage, pointing out that these outlets will serve holders of ration cards and those who do not hold them, while aiming to provide goods at unified prices across the republic. Access to this network will also make the current movement part of a broader system for making goods available.
At the same time, the Ministry opens the way for commercial chains and the private sector to join the initiative, provided that cooperation agreements are signed with the Internal Trade Development Authority to expand the base of participating outlets and benefit from the geographical spread of commercial chains.
The Ministry is also moving through other channels to increase supply, as it has established more than 500 main and subsidiary exhibitions within “Ahlan Schools”, in parallel with the expansion of one-day markets, permanent markets, outlets and mobile cars, with the aim of increasing availability and reducing intermediate links.
"Contain price increases"
Al-Dajwi said that increasing supply directly helps contain rising prices, citing sugar, the introduction of larger quantities of which contributed to lowering its price. Likewise, increasing production and supply leads to securing market needs and reducing price pressures, especially since the expansion of the outlet network and the multiplicity of sales sources represent a way to increase competition without the need to impose prices on the private sector.
These moves come at a time when data from the Central Agency for Public Mobilization and Statistics showed that the annual urban consumer price inflation rate recorded 14.5% during August, compared to 14.9% in July. Urban inflation also recorded a monthly change rate of 0.1% in August, compared to 0.4% in the same month last year, and 0% in July.
In contrast, core inflation, which is prepared by the Central Bank, recorded a monthly rate of change of 0.3% in August, compared to 0.1% in August 2025 and 0% in July, while the annual core inflation rate rose to 14.9% compared to 14.7% in July.
On the regulatory side, the Ministry of Supply is working to intensify campaigns on markets, wholesale stores, and intermediate links through the Supreme Committee for Supply and Commercial Control, while taking legal measures against practices that affect the availability of goods or their prices.
The Ministry uses digital tools to follow the movement of markets, including “price radar” and “inspector card,” in addition to the geographical signature of ports using geographic information systems (GIS), and is also studying the development of a “Track & Trace” system to track the movement of products from the source to the consumer.
