(3 minutes read)
· The Egyptian cabinet approved a procurement price of LE 820 per ardeb (150 kilograms) of wheat at 23.5% purity
· The planting of the local crop was set to begin now
· This will give an indication to the local farmers the ruling prices when the crop becomes ripe for harvest
Wheat prices are increasing globally. This trend may continue for some time. If so, it will negatively affect Egypt’s general budget. The government heavily subsidize the crops including wheat to enable people to buy wheat
The Egyptian cabinet approved a procurement price of LE 820 per ardeb (150 kilograms) of wheat at 23.5% purity. The planting of the local crop was set to begin now. This will give an indication to the local farmers the ruling prices when the crop becomes ripe for harvest.
Wheat prices are increasing globally. This trend may continue for some time. If so, it will negatively affect Egypt’s general budget. The government heavily subsidizes the crops including wheat to enable people to buy wheat.
Egypt is the largest importer of wheat in the world. The Egyptian government had to cancel wheat tenders 4 times this year due to the escalation in prices. The state treasury is also expected to benefit from the rise in commodity prices. By increasing the customs revenue it obtains from imported goods, the revenue mobilization becomes easier. Wheat prices in Russia, a major sourcing country for Egypt, have been increasing steadily. Wheat imports of Egypt from Russia have declined by 31.5 percent since the start of the 2021-2022 marketing season on July 1. Russia recently imposed a tax on wheat exports.
