On Wednesday, Egyptian Prime Minister Mustafa Madbouli chaired the ministerial meeting for the committee that was tasked to follow up on the repercussions of the global crisis on the Egyptian strategic commodities.
During the meeting, Minister of Supply and Internal Trade Ali Meselhi said that Egypt’s wheat stock for domestic consumption is sufficient for 7.2 months, noting that the ministry succeeded in getting 2.7 million tonnes of wheat from different countries during the crisis including France, Russia, Romania, Bulgaria, and Germany.
He added that Egypt has a strategic reserve of rice that covers 3.2 months while the strategic reserve of subsidized sugar covers 6.6 months.
The strategic reserve of subsidized oil covers 5.3 months while the strategic reserves of live meat cover about 14 months, the minister added.
The Prime Minister announced that the government has allocated EGP 1.1 billion to the Supply Commodities Authority and the Agricultural Bank of Egypt for purchasing the local wheat from the farmers.
During the meeting, Minister of Supply and Internal Trade Ali Meselhi confirmed that the supply of local wheat went smoothly, noting that there are more than 450 locations to supply wheat nationwide.
Egypt’s wheat imports are projected to go down due to the Ukraine-Russian, said the US Foreign Agriculture Service (FAS) of the US Department of Agriculture on March 28, 2022.
“FAS Cairo forecasts Egypt’s wheat imports in MY 2022/23 (July – June) at 11 MMT, down by 8.3 percent from MY 2021/22 Post’s import estimate figure of 12 MMT. Importing and buying wheat from other markets remains a viable option for government and private purchases,” the FAS said in its report.
Egypt is currently suffering from a potential crisis of wheat supply due to the ongoing Russian-Ukraine conflict as the two countries are the biggest wheat importer to Egypt. So, the government is targeting to increase the area of the wheat crops by 1.5 million feddans over the next three years in accordance with a new study conducted by the Egyptian Cabinet’s Information and Decision Support Center (IDSC).
Egypt needs about 18 million tons of wheat annually, with local productivity of 10 million tons of wheat. So, it has been gravely affected by the ongoing Ukraine-Russia conflict as it gets 80 percent of exported wheat from both conflicting countries.
Obstacles to wheat cultivation in Egypt boil down to the problem of pests, the lack of fertilizers, the increase in the land salinity, and climate change impacts, officials at the Ministry of Agriculture told Sout Al-Omma newspaper on Monday. The government is working to remove these obstacles with multiple, the official added.