Egypt’s strategic reserves of basic food commodities to last for months: Supply minister
Newspaper Title: https://english.ahram.org.eg/
Newspaper Number:
Sunday - 27 February 2022
Wheat reserves are sufficient for four months, Moselhi said in a meeting with El-Sisi on Sunday. The local wheat supply season also starts in April, he said, noting that the country expects to produce four million tonnes of wheat.
Egypt, therefore, has a strategic stock of wheat that will cover local consumption for this year, Moselhi affirmed.
Egypt has been preparing for possible scenarios regarding a likely rise in the price of commodities worldwide, especially wheat, due to the ongoing crisis between Russia and Ukraine, two of the world’s top wheat exporters.
A widely-condemned Russian invasion on Ukraine entered its fourth day on Sunday, killing 198 Ukrainians so far, according to the Ukrainian health ministry, and caused hundreds of thousands to flee from the country.
Russia commenced its attack on eastern Ukraine early on Thursday, where the most fertile agricultural lands exist.
Russia and Ukraine together account for 29 percent of the world’s wheat exports, according to February’s Wheat Outlook 2022 issued by the US Department of Agriculture (USDA).
Such crises significantly impact the prices of a number of basic commodities worldwide, Egyptian Prime Minister Mostafa Madbouly said in a cabinet meeting last week, affirming that Egypt is closely following up on the economic and political repercussions of the crisis.
Russia and Ukraine are the largest wheat exporters to Egypt, Cabinet Spokesman Nader Saad told the media on Wednesday. Egypt, the world’s largest wheat importer, imported 80 percent of its wheat last year from the two countries, Saad said.
While Egypt has 14 other countries from which it can import wheat, including countries outside Europe, such as the United States, Argentina, Canada, and Paraguay, it is not certain these 14 other countries can fill the wheat shortage in Egypt during this crisis, Saad said.
Saad warned that the Russia-Ukraine crisis could raise wheat prices and also disrupt supply to Egypt, urging citizens to rationalise the consumption of bread.
Earlier in February, the Egyptian government confirmed that it will raise the price of subsidised bread loaves – sold at five piastres for over 30 years – but will make sure that the neediest and most marginalised citizens are not affected.
Egypt also fears a possible rise in fuel price and drop in the flow of tourists, since Russia and Ukraine are among the top exporters of tourists to Egypt.
In 2021, Egypt imported 5.5 million tonnes of wheat, on top of the 3.5 million tonnes produced locally, according to data released by the supply ministry in December.
The ministry forecast Egypt’s wheat imports in 2022 to drop to 5.3 million tonnes due to an increase in local production.
Egypt’s strategic reserves of beans, oil, meat and poultry will also last for three, 5.5, and 8.5 months respectively, Moselhi told El-Sisi.
The sugar-producing seasons from sugarcane and beets began in January and February respectively, Moselhi said, noting that local production will cover 90 percent of the country’s needs.
Strategic sugar reserves will last for 4.5 months, the minister noted, while reserves of rice, in which the country has achieved self-sufficiency, will last for 6.5 months.
