Egypt kicks off 2024 wheat supply season to procure 3.5 mln tons

Governorates across Egypt started on Monday receiving local wheat from farmers, setting their sights on collecting 3.5 million tons of the staple crop during the 2024 wheat supply season.

Silos and warehouses in these governorates have been open to accommodate the large quantities of wheat supplied by farmers, the Ministry of Supply and Internal Trade said in a statement on Saturday.

The state will purchase wheat from farmers at a price ranging from EGP 1,900 to EGP 2,000 based on the purity level.

The ministry said farmers can expect to receive their dues within 48 hours.

Although wheat procurement is not mandatory this year, the ministry has continued enforcing strict measures on wheat usage and transportation.

The ministry extended the ban on transporting wheat between locations without a permit from supply directorates in the respective governorates.

Additionally, it prohibited using wheat in manufacturing fodder or fish farms.

The state also prohibits the private sector from using local wheat during the supply season without a permit.

This entails that private bakeries will continue relying on imported wheat for production.

Egypt’s total consumption of wheat amounts to around 18 million tons annually.

Half of wheat consumption goes into producing subsidised bread for around 70 million beneficiaries.

This year, Egypt needs 7.7 million tons of wheat to produce 93.5 billion bread loaves, the cabinet said in a report.

As a major wheat importer, Egypt relies on imports to meet around half its annual consumption.

However, disruptions in supply chains due to the Russia-Ukraine war and foreign currency shortages have prompted the government to incentivise farmers to supply their wheat.

In March, the cabinet announced increasing the local wheat procurement price by 25 percent, from EGP 1,600 to EGP 2,000 per ardeb.

In response to the Ukraine war, Egypt made local wheat supply obligatory in the 2022 season.

This required wheat farmers to sell a minimum of 12 wheat ardebs per feddan.

Violators were denied access to subsidized fertilizers and support from the state-owned Agricultural Bank of Egypt.

In the 2022 season, Egypt collected 4.2 million tons of local wheat.

In the 2023 season, when wheat supply became optional again, the collection stood at 3.8 million tons.

Tags: Egypt, wheat, purchase, crop, silos, consumption, warehouses