Egypt plans to raise domestic wheat procurement prices

The Egyptian government plans to increase the state procurement price for locally produced wheat by 6% in the 2027 season, to EGP 2,650 per ardeb from EGP 2,500 in the current season. On a per-ton basis, the new price will amount to approximately EGP 17,670, or $320/t. The announcement was made by Prime Minister Mostafa Madbouly. The higher procurement price is intended to encourage domestic wheat production and increase grain deliveries to state reserves.

Egypt continues to use guaranteed procurement prices to support local farmers and reduce its dependence on imported grain. In 2026, the government had already raised the wheat procurement price to EGP 2,500 per ardeb to encourage farmers to sell more of their harvest to state purchasing agencies. The proposed further increase could make wheat cultivation more attractive and encourage an expansion of planted areas.

During the 2026 procurement season, which ran from April to August, the Egyptian government aimed to purchase 5 mln tons of wheat from domestic producers. By mid-June, state purchases had already reached approximately 4.7 mln tons. A further increase in procurement prices is expected to support grain deliveries to state reserves, although actual purchase volumes will depend on the harvest and the relationship between government procurement prices and market prices.

Despite efforts to stimulate domestic production, Egypt remains one of the world’s largest wheat importers. According to the Food and Agriculture Organization of the United Nations (FAO), the country’s wheat production is forecast at around 10 mln tons in 2026, supported by an expansion in planted areas. Meanwhile, wheat import requirements for the 2026/27 MY are estimated at 13.5 mln tons, indicating that the domestic market remains heavily dependent on foreign supplies.

Thus, higher state procurement prices are expected to encourage Egyptian farmers to produce and sell more wheat, but they will not eliminate the country’s need for substantial imports.

Tags: Egypt, prices, wheat