Egypt increases local wheat procurement price

The Egyptian cabinet approved on Wednesday to increase the reference local wheat procurement price by 10 percent from EGP2,000 to up to EGP2,200 per ardeb (150 kg) for the new harvest season (2024-2025).

This move is part of a series of measures aimed at encouraging farmers to sell more wheat to the government and increasing local production amid global supply chain disruptions caused by the Russia-Ukraine war.

Egypt’s annual wheat consumption is estimated at around 20 million tons, but the country produces only nine million tons domestically.

Almost half of the wheat secured by Egypt from local and external sources goes to making subsidised bread for around 70 million people.

To bake a staggering 93.5 billion bread loaves this year, the country needs 7.7 million tons of wheat, according to an earlier cabinet report.

In May, Egypt raised the price of subsidized bread loaf to 20 piastres, up from 5 piastres, marking the first increase in the cost of the staple in three decades.

The government has sweetened the deal for farmers, increasing the wheat buying price more than once to boost local production amid the recent developments.

In March, the government increased the procurement price from EGP 1,500 to EGP 1,600 and then to EGP 2,000 in November and March, respectively.

Wheat harvest season kicks off nationwide in April.

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Tags: Egypt, prices, wheat