Gov’t wants to buy 8.5 mn tons of wheat in FY 2025-26

The government plans to purchase 8.5 mn tons of wheat in the upcoming fiscal year, split between local and imported supply, a government source told EnterpriseAM. That’s around 300k tons more than FY 2024-2025 as the state looks to ensure sufficient bread availability under its subsidized bread program.

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What’s the sourcing strategy? Around 3-3.5 mn tons will come from local farmers, who are barred from selling their harvest before meeting state quotas. The remaining 5 mn tons will be imported through international contracts, the source said.

REMEMBER- The Madbouly government recently announced that it will increase its payment for local wheat to EGP 2.2k per ardeb of wheat during the upcoming harvest season, up from EGP 2k.

Bread prices will stay put even though the cost of producing subsidized bread is expected to reach EGP 125 bn in FY 2025-2026, up from EGP 90 bn this year, according to a government document seen by EnterpriseAM. The Finance Ministry has allocated EGP 124.3 bn for bread subsidies in next fiscal year’s draft budget, up from EGP 97.7 bn.

The increase comes as the government raises its projected wheat import price to USD280 per ton, up from USD 240 this year. To cushion against further price shocks, the draft budget sets aside EGP 44 bn for subsidized commodity costs — more than four times the EGP 10 bn earmarked in the current fiscal year.

There are also new wheat suppliers on the radar, with Egypt reviewing import requests from Pakistan and Mexico as it looks to expand beyond its 22 approved wheat origins, Central Administration of Agricultural Quarantine head Mohamed El Mansi told Enterprise AM. The new sources are being vetted for food safety and soil impact.

DATA POINT- Egypt imported 14.4 mn tons of wheat in 2024, mostly split between the government and private buyers. Around 12 mn tons came from just two countries — Russia and Ukraine — with the rest sourced from seven other origins.