Egypt’s wheat, cooking oil, and sugar reserves secure amid logistical challenges

EGYPT – Egypt’s current reserves of essential food commodities, including wheat, cooking oil, and sugar, are stable and sufficient to meet domestic demand for several months, according to Hossam Elgrahy, Deputy Chairman of Egypt’s General Authority for Supply Commodities (GADC).

In an interview with Asharq Business, Elgrahy confirmed that the country’s wheat reserves will last for 4.6 months, while cooking oil and sugar reserves are secure for seven and 14 months, respectively.

Elgrahy also disclosed that vessels carrying a substantial shipment of 430,000 tons of Russian wheat are scheduled to begin loading on November 18, marking a crucial step in bolstering Egypt’s wheat reserves.

The shipment was delayed due to logistical issues on the Russian side, Elgrahy explained, stressing that the delay was not linked to any political tensions or crises between Egypt and Russia.

“This delay is logistical and does not reflect any disputes,” he stated, underscoring the stability of trade relations between the two nations.

As one of the world’s largest wheat importers, Egypt has carefully managed its supply chain in recent years.

In his comments, Elgrahy highlighted Egypt’s strategic choice to source wheat from Black Sea ports, where freight costs are significantly lower at around US$17 per ton, compared to an estimated US$54 per ton from the United States.

Recently, Egypt and Russia formalized a substantial wheat supply agreement, extending their partnership until April 2025.

Under the agreement, Russia will supply Egypt with millions of tons of wheat over the next two years, reinforcing Egypt’s strategic wheat reserves and supporting its efforts to boost domestic production.

The agreement came after Egypt’s General Authority for Supply Commodities (GASC), recently secured a historic contract for 3.12 million tonnes of wheat, which will be delivered at a rate of 510,000 tonnes per month from the Black Sea region between November and April.

As the world’s largest wheat importer, the purchase marked GASC’s largest direct purchase since it began this practice in 2022.

According to the Food and Agriculture Organization (FAO), Egypt’s wheat imports are projected to rise by 1.6% to 12.2 million tonnes in the upcoming season.

This follows a significant increase in spending on wheat, which surged by 30% to approximately US$2.3 billion in the first half of 2024-25. The majority of this wheat is consumed under a government subsidy program, costing nearly US$3 billion annually.

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