Egypt targets 11% increase in local wheat purchases for the Nov-April season

EGYPT – The Egyptian government is ramping up efforts to strengthen its wheat supply chain by increasing local wheat purchases from farmers by 11% to reach 4 million tons in the upcoming harvest season, which begins in mid-April.

This move comes as part of broader strategies to enhance food security and reduce reliance on imports, according to Supply Minister Sherif Farouk.

The wheat planting season, which started in mid-November and will continue until the end of January, is expected to yield a harvest from mid-April to mid-July, covering a cultivated area of 3.1 million feddans, slightly less than last year’s 3.2 million feddans.

Despite the push for local production, Egypt remains heavily dependent on wheat imports to meet its annual consumption of approximately 20 million tons.

In 2024, the country’s wheat imports surged to a decade-high of 14.2 million tons, marking a 31% increase from the previous year.

Farouk revealed that Egypt aims to import about 6 million tons of wheat this year, with the government’s share of imports rising by 30% to 6.2 million tons.

Between July 2024 and January 2025, the world’s largest wheat consumer imported 6.3 million metric tons from Russia, a 70% increase compared to the same period last year, according to analysts from Rusagrotrans, a Russian rail carrier.

On the other hand, Russia has maintained a record pace of shipments, exporting 32.2 million metric tons so far this season. However, upcoming export quotas set to take effect on February 15 will limit Russia’s wheat exports to 10.6 million metric tons until July 1, 2025.

While Egypt remains Russia’s largest wheat customer, shifts in global trade have affected other major buyers. Bangladesh has emerged as the second-largest importer of Russian wheat with 2.3 million tons, while Turkey’s purchases have plummeted by 47% due to an import ban aimed at protecting its domestic market.

Algeria and Kenya round out the top five importers, purchasing 1.7 million tons and 1.4 million tons, respectively.

GASC signs US$700M loan deal to bolster food security

To strengthen its food security strategy, Egypt’s General Authority for Supply Commodities (GASC) has secured a US$700 million loan from the Islamic Trade Finance Corporation (ITFC).

This funding is part of broader cooperation efforts between Egypt and the Saudi organization, which has also earmarked an US$800 million loan for the Egyptian General Petroleum Corporation to support the country’s energy sector.

The funding comes at a time when the country’s strategic wheat reserves have fallen to a four-month supply, down from seven months in mid-2024.

However, questions remain over GASC’s exact role in wheat procurement after the government transferred strategic buying responsibilities to Mostakbal Misr, a state entity established in 2022.

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