{"id":631777,"date":"2018-03-27T04:12:31","date_gmt":"2018-03-27T04:12:31","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/27\/our-broken-wheat-policy-may-cost-us-an-extra-egp-1-4-bn-this-year\/"},"modified":"2018-03-27T04:12:31","modified_gmt":"2018-03-27T04:12:31","slug":"our-broken-wheat-policy-may-cost-us-an-extra-egp-1-4-bn-this-year","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/27\/our-broken-wheat-policy-may-cost-us-an-extra-egp-1-4-bn-this-year\/","title":{"rendered":"Our broken wheat policy may cost us an extra EGP 1.4 bn this year"},"content":{"rendered":"

Our broken wheat policy may cost us an extra EGP 1.4 bn this year:<\/strong> Egypt\u2019s General Authority for Supply Commodities (GASC), the world\u2019s largest wheat buyer. might be paying an extra EGP 1.4 bn on wheat imports this year as a result of \u201ccumbersome import requirements,\u201d according to a US Department of Agriculture report (pdf)<\/a>. At issue are regulations imposed by the Central Administration for Plant Quarantine (CAPQ) that require wheat shipments to be sieved upon arrival at Egypt\u2019s port at USD 3 per tonne. \u201cSieving is a practice done normally as part of the milling process, meaning that Egyptian authorities are mandating and charging for a process that would be carried out by processors regardless.\u201d This practice is particularly strange considering the government had rescinded its zero-ergot policy<\/a>, but the CAPQ insists on sieving wheat shipments to remove foreign material including the fungus. The sieving process also takes time, which drives up demurrage fees \u2014 the tariff charged to suppliers for vessels sitting at ports past the contracted period.<\/p>\n

Traders are (shocker) adding these additional costs to their offers in GASC\u2019s wheat tenders<\/strong>, which means the government ends up footing the bill. These increased costs are evident in the prices GASC ends up paying for shipments: Between October 2017 and February 2018, the state grain buyer paid around USD 10.26 (EGP 182.63) more per metric tonne than the global average. \u201cThis indicates that importers or traders are adding an additional risk premium to offset the high risk of doing business in the Egyptian market,\u201d the report says.<\/p>\n","protected":false},"excerpt":{"rendered":"

Our broken wheat policy may cost us an extra EGP 1.4 bn this year: Egypt\u2019s General Authority for Supply Commodities (GASC), the world\u2019s largest wheat buyer. might be paying an extra EGP 1.4 bn on wheat imports this year as a result of \u201ccumbersome import requirements,\u201d according to a US Department of Agriculture report (pdf). 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The 63,000-tonne shipment \u201ccontained 0.06% ergot, just above the 0.05% limit permitted according to Egypt\u2019s state tender rules,\u201d Agriculture Ministry spokesperson Hamid Abdel Dayem said last week, Reuters reports. The cargo\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/6\/647.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":627504,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/06\/04\/stalled-russian-wheat-shipment-allowed-to-enter-the-country-after-test-results-indicate-safe-ergot-levels\/","url_meta":{"origin":631777,"position":1},"title":"Stalled Russian wheat shipment allowed to enter the country after test results indicate safe ergot levels","author":"enterpriseam admin","date":"4 June 2018","format":false,"excerpt":"Egyptian quarantine officials agreed yesterday to allow a shipment of Russian wheat to enter the country after first refusing it on the grounds that it had a level of ergot contamination that exceeded legal limits, unnamed port officials tell Reuters. Samples from the stalled grain shipment were reexamined in a\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":641903,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/08\/01\/wheat-imports-to-cost-egp-3-bn-more-than-planned-source\/","url_meta":{"origin":631777,"position":2},"title":"Wheat imports to cost EGP 3 bn more than planned -source","author":"enterpriseam admin","date":"1 August 2017","format":false,"excerpt":"Egypt\u2019s wheat import bill is set to increase by EGP 3 bn from projected in the FY2017-18, a Finance Ministry source told Al Mal. The expected increase follows the Supply Ministry\u2019s revised projection of having to import 7 mn tonnes of wheat during the fiscal year, from the 6.2 mn\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630121,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/12\/cabinet-greenlights-egp-200-bn-sovereign-wealth-fund-farmers-arent-happy-with-wheat-prices\/","url_meta":{"origin":631777,"position":3},"title":"Cabinet greenlights EGP 200 bn sovereign wealth fund, farmers aren\u2019t happy with wheat prices","author":"enterpriseam admin","date":"12 April 2018","format":false,"excerpt":"The talking heads had a selection of topics to keep them busy last night, most notable of which was the Ismail Cabinet greenlighting the establishment of a EGP 200 bn sovereign wealth fund. We have chapter and verse in Speed Round, below.But first: Argineering won EGP 100,000 in the CIB-sponsored\u2026","rel":"","context":"In "Enterprise+: Last Night\u2019s Talk Shows"","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":628540,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/07\/govt-purchased-1-8-mn-tonnes-of-local-wheat-for-egp-6-bn\/","url_meta":{"origin":631777,"position":4},"title":"Gov\u2019t purchased 1.8 mn tonnes of local wheat for EGP 6 bn","author":"enterpriseam admin","date":"7 May 2018","format":false,"excerpt":"The government has purchased 1.8 mn tonnes of local wheat from local farmers since the wheat harvest season kicked off last month, paying out EGP 6 bn so far, says Supply Minister Aly El Mosely. The ministry has reached almost half of its target of 4 mn tonnes for this\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":652290,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/05\/cabinet-approves-purchasing-domestic-wheat-at-international-prices\/","url_meta":{"origin":631777,"position":5},"title":"Cabinet approves purchasing domestic wheat at international prices","author":"enterpriseam admin","date":"5 January 2017","format":false,"excerpt":"Gov\u2019t to buy wheat from domestic farmers at international prices: Cabinet has approved a decision to purchase wheat from domestic farmers at the same price as GASC pays for wheat it purchases in international tenders, Agriculture Minister Essam Fayed said, according to Reuters' Arabic service. The purchase price for domestic\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/631777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=631777"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/631777\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/631761"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=631777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=631777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=631777"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=631777"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=631777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}