In Egypt, the government has increased in recent weeks, its supply of wheat to local producers to consolidate its strategic reserves.
According to data collected by Bloomberg, the executive has already acquired 1.6 million tonnes of wheat during the first three weeks of the harvest which started in mid-April, double the volume acquired during the same period. Last year.
This renewed interest in local production is mainly due to the uncertainty prevailing on the world wheat market. Egypt, which depends on 60% of imports for its consumption of cereals, has to face restrictions from certain major exporters, including Russia.
While it is true that the country occupies a prominent place in the backlog of traders, the authorities prefer to be cautious by relying more than usual on domestic supply.
It should be noted that the government has stepped up incentives for producers as part of its strategy to consolidate its stocks. These include raising the guaranteed price to 700 pounds for 150 kg of wheat, streamlining reimbursement procedures and authorizing operators to operate despite the curfew imposed to limit the spread of the coronavirus.
As a reminder, the government plans to buy from producers 3.6 million tonnes of wheat this year compared to 3.2 million tonnes a year earlier.
Source Agence Ecofin May 2020