Egypt's Government has so far bought 4,537 million tons of wheat on the local market. Thus already exceeded the goal of the Government of 4 million tons. Egypt's Ministry of agriculture confirmed that it will take the entire quotes from local farmers until the harvest is completed. This will be the case already mid-June this year.
The Egyptian Government had created additional storage capacity and thus accelerates the absorption of the harvest. The farmers receive a fixed price for their wheat 420 Egyptian pounds (€42.6) per ardeb (kg 150) after the Government previously had rejected the proposal by experts, to pay only world prices this year.
The prices so far above world market levels and the farmers are encouraged as a result continue to grow wheat despite the weather risks. The subsidy had led in the previous year that imported wheat to own harvest has been rezoned and that subsidies were surreptitiously.
Egypt's grain harvest begins in April and ends in July. During this period, the intervention stocks of the country with local wheat are populated. 5.3 million tons were in the previous year and 3.7 million tonnes the year before.
