Egypt procures 2.5M tons of local wheat amid strategic shift in grain policy
This uptick comes despite a reduction in wheat-cultivated areas, signaling a modest improvement in harvest performance
EGYPT – Egypt has secured 2.5 million metric tons of wheat from local farmers since the procurement season began in mid-April, marking a slight increase from 2.53 million tons during the same period last year, according to official documents cited by Reuters.
This uptick comes despite a reduction in wheat-cultivated areas, signaling a modest improvement in harvest performance.
The government has set an ambitious target to purchase between 4 million and 5 million tons of wheat domestically this season, surpassing the typical annual procurement of 3.5 million tons. To incentivize farmers, the procurement price was increased by 10%.
This strategy aims to reduce reliance on imports, which are projected at around 6 million tons to meet the demands of Egypt’s subsidized bread program that serves over 69 million citizens.
In a bid to empower farmers and stimulate participation, the government has ensured that procurement prices are rewarding, financial dues are settled within 48 hours of delivery, and logistics are streamlined to ease the burden on suppliers.
“This season is promising, not only for farmers but for Egypt’s food security strategy. We urge all farmers to seize this opportunity, deliver their harvests promptly, and benefit from the favorable pricing and support services provided by the state,” Farouk said.
As of May 7, Egypt’s strategic wheat reserves were estimated to last approximately 4.5 months, while vegetable oil reserves are sufficient for 3.7 months, according to Supply Minister Sherif Farouk.
In a significant policy shift, the Egyptian military-affiliated Mostakbal Misr Agency for Sustainable Development has taken over the role of importing strategic commodities, including wheat, from the decades-old General Authority for Supply Commodities (GASC).
This transition has introduced new dynamics into Egypt’s grain procurement strategy, with Mostakbal Misr contracting 1.267 million metric tons of wheat, predominantly from Russia, to meet the country’s needs through June 2025.
To bolster food security, Egypt and the European Commission agreed on a €90 million (US$93.9 million) soft funding deal in March 2025. This funding aims to enhance grain storage and logistics infrastructure, supporting Egypt’s efforts to ensure long-term wheat sufficiency.
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