Despite Supply Minister Ali Moselhy making tall claims that his country is working on a wheat self-sufficiency program in the country to cut food grain imports, Egypt is most likely to increase wheat imports in 2019.
According to Hisham El Attal (هشام العتال), a board member of the Agriculture Export Council, Egypt is planning to increase wheat imports in 2019 to build domestic stockpiles.
According to Hisham El Attal (هشام العتال), a board member of the Agriculture Export Council, Egypt is planning to increase wheat imports in 2019 to build domestic stockpiles.
“The domestic wheat production in 2018 is very low. To prevent future political unrests fueled by high food prices, the government has no alternative other than boosting wheat imports,” Hisham El Attal said.
According to Hisham El Attal (هشام العتال), overseas wheat purchases may increase to 10.5 million metric tonnes in 2018-19. Last year Egypt imported 9.8 million tonnes wheat from Russia and other wheat importing countries.
The U.S. Department of Agriculture also made a similar projection in September 2018 that, owing to low domestic production, Egypt is more likely to increase its wheat imports in the year 2019. However, wheat Trader Attal’s import forecast is higher than the US Department of Agriculture’s 10 million tonnes forecast.
Wheat prices are this time low in the international market. So it is more likely that Egypt will try to take advantage of the slump in prices to build stockpiles. “Stocking wheat piles will enable the Egyptian government to supply immediately to the market in case of any political unrest in the country,” an Egyptian wheat trader told ashrafalAttal.com.
According to a latest United Nations report, food-price inflation concerns are set to persist for policymakers in the country in 2019.
“As rice declines and wheat trade remains below peak this year, importers are paying more in 2018 than they were paying a year ago,” the United Nations report states.
“The stockpiles in Egypt will be back to ‘healthy’ levels by a year of bumper wheat, corn, and rice harvest. The bumper crop will reduce inflation concerns significantly as the country won’t need to increase its agriculture imports,” said Hisham El Attal.
According to agriculture stats released by the Government in September month, Egypt this year produced 3.15 million tonnes of wheat which is one of the lowest tallies in years for the world’s largest importer. The harvest suggests that Egypt is unlikely to become self-sufficient in wheat in the near future despite government plans to boost farmers to reach self-sufficiency.
Egyptian Supply Minister had said previously that it was expecting to purchase 4 million tons of wheat from local farmers. Last year, it purchased 3.6 million tons of wheat from its farmers. “Expectation was high this year, but crop production was a record low despite government taking measures to boost farmers,” said a wheat trader.
According to Hisham El Attal (هشام العتال), overseas wheat purchases may increase to 10.5 million metric tonnes in 2018-19. Last year Egypt imported 9.8 million tonnes wheat from Russia and other wheat importing countries.
The U.S. Department of Agriculture also made a similar projection in September 2018 that, owing to low domestic production, Egypt is more likely to increase its wheat imports in the year 2019. However, wheat Trader Attal’s import forecast is higher than the US Department of Agriculture’s 10 million tonnes forecast.
Wheat prices are this time low in the international market. So it is more likely that Egypt will try to take advantage of the slump in prices to build stockpiles. “Stocking wheat piles will enable the Egyptian government to supply immediately to the market in case of any political unrest in the country,” an Egyptian wheat trader told ashrafalAttal.com.
According to a latest United Nations report, food-price inflation concerns are set to persist for policymakers in the country in 2019.
“As rice declines and wheat trade remains below peak this year, importers are paying more in 2018 than they were paying a year ago,” the United Nations report states.
“The stockpiles in Egypt will be back to ‘healthy’ levels by a year of bumper wheat, corn, and rice harvest. The bumper crop will reduce inflation concerns significantly as the country won’t need to increase its agriculture imports,” said Hisham El Attal.
According to agriculture stats released by the Government in September month, Egypt this year produced 3.15 million tonnes of wheat which is one of the lowest tallies in years for the world’s largest importer. The harvest suggests that Egypt is unlikely to become self-sufficient in wheat in the near future despite government plans to boost farmers to reach self-sufficiency.
Egyptian Supply Minister had said previously that it was expecting to purchase 4 million tons of wheat from local farmers. Last year, it purchased 3.6 million tons of wheat from its farmers. “Expectation was high this year, but crop production was a record low despite government taking measures to boost farmers,” said a wheat trader.
“Some of the wheat production has been purchased by private mills at higher prices than the government, “a private wheat trader said.
According to this wheat trader, the price gap created an opportunity for the private sector that paid to farmers in the Egyptian pounds rather than paying in dollars for imported wheat.
