The coronavirus pandemic has increased uncertainties in several agricultural markets. In this context, many countries which depend heavily on international imports are thus seeking to secure their supplies.
In Egypt, the government plans to acquire 4 million tonnes of wheat from farmers during the 2021/2022 harvest, which will start by April 15. So announced Ali Moselhy, Minister of Supply. This is an increase in volume compared to the previous season (3.6 million tonnes).
The surge in year-over-year purchases comes as the executive seeks to consolidate its strategic reserves amid uncertainties in the global grain market. According to Moselhy, the country already has a stock of wheat that can support national consumption for 3.6 months.
In 2021/2022, Egypt is expected to consume 21.3 million tonnes of wheat, of which 13.2 million tonnes will come from the international market. The government released, during the fiscal year 2020/2021, 84 billion Egyptian pounds ($ 5.3 billion) to finance its food subsidy program which consists of basic commodities such as wheat, sugar, cooking oil, beef and rice.
Source Ecofin Agency