Local wheat supply sufficient until mid February

CAIRO – 27 July 2017: Egypt’s strategic reserve of wheat reached 5.9 million tons, after adding the contracted volumes, enough to cover the domestic need for six months and half, Ministry of Supply’s Spokesperson Mamdouh Ramadan said Thursday.

In a phone interview with ON Live satellite channel, Ramadan said that the government targets securing the strategic reserves of the basic goods.

He said that the government bought around 3.4 million tons of wheat from farmers, while Egypt’s annual need of wheat amounts to 9.7 million tons to cover the domestic need of the subsidized bread being sold in bakeries for 5 piasters.

The production of a loaf of bread costs the state 60 piasters, he said.

Earlier this month, the Ministry of Supply issued a decision to stop subsidizing flour starting from August.

The move is expected to reduce wheat imports by up to 10 percent and aims to avoid smuggling flour outside the subsidies system.

In fiscal year 2016/2017, wheat imports registered 5.58 million tons, up from 4.4 million tons in the previous year.