With the coronavirus and its share of uncertainties, fears of a disruption in the global supply of agricultural products are high. While some countries fear for their supplies, others like Egypt are simultaneously showing their serenity.
In Egypt, the government has just reported a good level of reserves of certain strategic foodstuffs for the population. According to a statement relayed by Reuters, the executive indicates that the volume of wheat can meet national needs for the next 5 months.
In addition, the stock of cooking oil will hold for 4.7 months while the sugar supply will keep demand up to the end of October. The product will also benefit from a comfortable local supply of 1.7 million tonnes in 2021 with the increase in cultivated areas.
Overall, the good level of food will allow the country to be less vulnerable to price fluctuations on the world market, particularly related to fears over supply in the context of the coronavirus pandemic.
This is all the more true for wheat, for which its main supplier, Russia, plans to reduce the export tax per tonne from $ 25 to $ 50 between February 15 and June 30, according to some. sources to stabilize prices in the domestic market.
In Egypt, the government allocated in 2019/2020, 89 billion pounds for its program of food subsidies of which an amount of 38 billion pounds went to foodstuffs like rice, beef, cooking oil and chicken.
Source Ecofin Agency