Egypt raises wheat price as it seeks to build food stocks
The government lifts payments to farmers and backs new fertiliser investment to support supply.
EGYPT – Egypt will pay farmers more for wheat this season as it works to secure food supplies during a period of regional tension.
Finance Minister Ahmed Kouchouk said the state will buy local wheat at 2,500 Egyptian pounds per ardeb of 150 kg, equal to about US$46.76. The previous price ranged from 2,250 to 2,350 pounds, or about US$42.08 to US$43.95, based on quality. He did not confirm if the same range will apply this year.
“We raised the procurement price to support farmers and secure enough wheat for the country,” Kouchouk said during a press briefing.
Stocks and supply targets
Prime Minister Mostafa Madbouly said current reserves of key goods can cover about six months of demand. These include wheat, vegetable oils, corn, and fuel. He added that the government plans to increase this buffer by two to three more months.
“We are working to increase our reserves to ensure stable supply,” Madbouly said.
Local media reports suggest wheat stocks alone may cover about three months, while vegetable oils can last six months. Officials did not give a full breakdown.
Egypt aims to buy about 5 million metric tons of wheat from local farmers this season. The harvest will start within weeks. Last year, the government bought about 3.9 million tons, below its target.
The country still imports close to 10 million tons of wheat each year. About half goes to a bread support programme that serves around 70 million people.
Fertiliser deal supports farm output
At the same time, Indorama Corporation has signed an agreement with Misr Phosphate to build a phosphate fertiliser plant in the Sokhna Industrial Zone.
The first phase will cost up to US$525 million and produce 600,000 tonnes each year. The project will also create about 2,500 direct jobs and around 500 roles during construction.
“This project will support local industry and expand exports,” a statement from the Ministry of Petroleum said.
The plant will produce fertilisers and related products such as ammonia, urea, and sulphur. Around 80 percent of output will go to export markets.
The company has asked the International Finance Corporation and the European Bank for Reconstruction and Development to help arrange funding.
Officials say these steps will support farm output and reduce pressure on imports as the country works to secure food supply.
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