Egypt increases local wheat purchase price in a bid to shore up its reserves

Egypt's finance minister announced a 2,500 pound ($46.76), per 150 kg?ardeb, increase for the harvest of this year. The move is part of a broader effort to increase the stocks?of strategic commodities in response to the Iran War.

The wheat price range was previously fixed between 2,250-2350 pounds, depending on the quality. Ahmed Kouchouk, Finance Minister, did not specify if the same range would apply during harvest which is due to begin in two weeks.

At the same press conference as the Prime Minister, Mostafa?Madbouly stated that Egypt's strategic goods reserves - including wheat, vegetable oil, corn, oil, and?gas- were sufficient to meet six months of need. However, he didn't specify the specific stock levels.

He said that the government was adding two or three months worth of stock.

According to the state-run newspaper?Al Ahram, published earlier this week, the head of Egypt’s state grain importer Future of Egypt stated that wheat stocks currently cover three months while vegetable oil reserves cover six months.

Future of Egypt and the Supply Ministry did not respond immediately to requests for comments.

Egypt is aiming to purchase 5 million metric tonnes of local wheat in the coming year as it moves away from being a major wheat importer and towards self-sufficiency.

Egypt imports 10 million tons of grain a year. The state buyer receives roughly half of this amount for the country's subsidised bread programme, on which 70 million people depend.

The government purchased 3.9 millions tons of wheat last year from local farmers. This was slightly less than its announced target of 4 to 5 million tons for the season, which runs from mid-April through mid-August.

(source: Reuters)