Egypt buys 1.8 million tonnes domestic wheat

06 Jul, 2007

Egypt said on Thursday it had bought 1.8 million tonnes of wheat from local farmers since the start of the marketing season in April, well short of the government's target of 3 million tonnes.
Social Security Minister Ali Musailhi told reporters that global bad weather and wheat shortfalls had pushed prices to new highs, and Egyptian traders had competed with the government to buy up supplies of local wheat. Musailhi said the government would continue buying up available amounts of local wheat past the official end of the marketing season on July 15.
Egypt bought 2.85 million tonnes of local wheat from Egyptian farmers last year. The ministry buys local wheat for distribution in towns at subsidised prices. Prices start at 170 Egyptian pounds ($29.82) for an ardebb of 150 kg, or about $198.80 per tonne, and rise for higher quality. The government's General Authority for Supply Commodities (GASC) also imports about 6 million tonnes of wheat each year to cover the gap between local production and consumption, making Egypt one of the world's largest wheat importers.

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