Egypt extends ration cards due to high food prices

By Cynthia Johnson

CAIRO (Reuters) - Egypt has opened its ration card system to an extra 17 million people and doubled the amount of rice that card holders receive in an effort to counter the effects of rising food prices.

The global prices of staple foods have risen more than 40 percent in the last year causing shortages, hoarding and riots in many developing countries and prompting the United Nations to warn of malnutrition and social unrest.

In Egypt, inflation has jumped to 16.4 percent and the government is trying to contain growing public discontent over rising food prices which are accentuated by low wages.

Three people were killed in a Nile Delta town last month in clashes with police after textile workers tried to strike.

Egypt had not added to the ration card registry since 1988 before opening it up for new registrations until June 30.

"Up to now we have received about 17 million additional citizens... This means we will cover about 55 million people," Social Solidarity Minister Ali Musailhi told Reuters. Egypt's population is about 75 million.

Egyptians with the cards will be eligible to buy 2 kg (4.4 pounds) of rice -- double the amount previously allowed -- in addition to 2 kg of sugar, 1.5 kg of oil, and 50 grams of tea per person every month for 15 Egyptian pounds.

"If you think of a family of four persons, they will get quite sufficient amounts from these components," Musailhi said.