(Ecofin Agency) - During the 2017-18 season, the Egyptian government purchased a total of 3.15 million tons of wheat from local farmers. The information was announced June 27 by Supply Minister Ali Moselhy (photo), relayed by Reuters.

This volume is slightly below the stock last year (3.6 million tons) and down from previous forecast of 3.5-4 million tons.  In fact, private sector mills offered higher prices than the government to farmers, and acquired the lion’s share of output during the harvest time.

“The private sector was buying the local crop from farmers at 3,950 Egyptian pounds ($222.16) delivery at mills while the government was buying at around 3,600 and the imported wheat was at 4,150 at the harvest time,” Hesham Soliman, a private grain trader, told Reuters.   

Authorities said the stock acquired allowed to supply a government-led bread subsidy program which is designed to reach over 82 million people across the country. Under the plan, public bakeries offer beneficiaries 150 loaves of bread per month at 0.05 pounds each, less than one-tenth of production cost, the US Department of Agriculture said.

Let’s note that during the 2018-19 fiscal year beginning next July, Egypt is expected to import about 12.5 million tons of wheat, a figure that includes both the Supply Authority (GASC) and private sector purchases. By 2020, government targets to produce 10 million tons of the grain.

Espoir Olodo