CAIRO: Ministry of agriculture announced it expects to buy 4 million tons of wheat from the domestic harvest before June 30, a source at the Ministry of Agriculture told state-owned MENA Friday.
The Ministry of Agriculture issued a report in May that since Jan. 1, 2014, it had received 511,000 tons of wheat so far from local farmers, which is 48 percent more than the amount received in the same period last year, expecting that local wheat crop to reach 4.2 million tons by 2014 according to Youm7.
The Friday announcement follows an announcement by the deputy head of the Supply Commodities Authority Mamdouh Abdel Fatah last week that the total of wheat purchased during the season ending June 20 reached 3.7 million tons, the same figure as last year.
“Egypt’s current wheat acreage is estimated at 3.4 million acres, compared to 3.1 million acres in 2013,” Services Sector Head at the Ministry of Agriculture Hamdy Assi told ONTV in May.
The Ministry of Agriculture aims to gradually raise wheat production to satisfy 81 percent of domestic need by 2030, Al-Mal reported on June 19.
Egypt typically buys around 3.6 million tons of wheat a year from local farmers and around 10 million tons from abroad, making it the world’s largest importer, Minister of Supply Khaled Hanafy told Reuters in March.
“The government buys wheat from farmers at a price 14 percent higher than what the traders and middlemen offer them for it,” Abu Hadid added.
The General Company for Silos and Storage (GCSS) signed on June 10 a 370 million EGP ($51.7 million) deal with the United Arab Emirates for building two wheat silos in Amiriya and Damietta, in the Nile Delta region north of Cairo, Mubasher reported.
Last January, the Ministry of Supply announced the General Authority for Supply Commodities (GASC) contracted to purchase 240,000 tons of Russian and U.S. wheat for over $299 per ton.