Direct Subsidy Program for Bakers

And while there will be no increase in the controlled price of a sixteen ounce loaf of bread, bakers will be experiencing some relief. Minister Mai announced the establishment of a direct subsidy program for bakers. According to the Minister of Food Security, the program is designed to compensate bakers for revenue lost as a result of G.O.B’ s decision not to increase the fixed price of bread. The program will run from June to December of this year. Minister Mai gave the details.

Jose Abelardo Mai

Jose Abelardo Mai, Minister of Agriculture, Food Security and Enterprise

“The subsidy program will be instituted in an equitable manner that will ensure that small bakeries benefit from a fair share of the subsidy in the line with their output, PUP and UDP bakeries. The rate of the subsidies will be twenty five cents per loaf with four purchases being the basis for calculating reimbursement levels for specific bakeries. The program accepts the data provided by the bakers, indicating a conversion rate of one hundred and twenty loafs for sack of flour. The program will use 2021 data as the baseline for estimating production levels for specific bakeries with an estimate of seventy percent of production being the subsidized product. The subsidy program will run from June 2022 to December 2022. The government believes this program will bring significant cash flow relief to the industry and provide the needed incentive for bakeries to keep supplying the sixteen ounce product.”