According to Sherif Farouk, the Minister of Supply, Egypt's wheat imports could be significantly reduced this year. Domestic procurement will reach 5 million metric tonnes, up from 3.5 million tons last year.

"Increased wheat procurement is welcome." Farouk stated that we could reach 5 million tons or even exceed 4 millions.

This figure is in line with the previously announced goal of purchasing between 4 and five million tons of local produce this season compared to only 3.4 million by 2024.

Farouk, while calling the increase in procurement promising said that it "still isn't satisfying to us" and predicted further improvement in the coming year.

Egypt, as one of the largest wheat importers in the world, uses 9.5 million tonnes annually to subsidise bread. Wheat is the mainstay of the subsidised-bread programme. It provides a vital lifeline to over 69 millions citizens.

According to official data, Egypt has purchased around 3.5 millions tons of wheat since the start of the local harvest, in mid-April. The harvest is expected to continue until mid-August, compared with 3 million tons during the same period in 2017.

He added that greater self-sufficiency allows Egypt to plan international purchases in a strategic way.

We are not forced to purchase during export peak periods. We can select the best time and price.

Farouk noted that negotiations were ongoing with Bulgaria, Egypt’s fourth largest wheat supplier. The negotiations will continue to be conducted through barter systems or direct deals with Mostakbal Misr - a military-linked importer of state agriculture commodities.

He dismissed concerns about wheat reserves, saying that "any increase or decrease is part of our strategic plan to secure the best price. It's all about storage capacity and economic logical."

He said that Egypt has enough wheat to last six months. Vegetable oil will last four months and sugar 12 months. Reporting by Nayera Ezz and Mohamed Ezz, Writing by Tala RAMADAN; Editing and Revision by Kirby Donovan and David Evans

(source: Reuters)