Flour, diesel subsidies officially come to an end for subsidized bakers: The Supply Ministry unveiled its new subsidy system, which will come into effect in the first week of August. Wheat mills and bakeries will be required to pay the ministry market price for wheat and flour while holding the retail price of bread at EGP 0.05 per loaf, according to Ahram Gate. Wheat mills and bakeries will receive some compensation for the production cost of flour and bread — which the ministry has set at EGP 180 per 100 kg sack of flour — as long as the product meets quality standards. This would ensure the government only pays for the final product rather than defraying the cost of raw materials that have been consistently siphoned out of the system. The phase-out has reportedly begun, Al Shorouk reports.

The ministry will monitor the market to ensure bakeries do not raise their prices. Inspection committees will also take monthly samples from wheat mills to test for quality, Supply Minister Ali El Moselhy said, according to Al Shorouk.

El Moselhy also announced that bakeries will be paying for diesel at market prices come August, Al Masry Al Youm reports.

Some bakers and millers are (expectedly) up in arms over the new system, which they had hoped would not come into effect on time, with some 28k bakery owners saying they won’t play ball with the new system until the ministry clears back dues, Al Mal reports. Bakers are also demanding that the ministry raise production costs to EGP 200 per 100 kg sack of flour. They threatened to partially shut down production if their demands are not met, pushing El Moselhy to hold a closed-door meeting with them, according to the newspaper.