CAIRO - 6 March 2022: The cost of increasing wheat prices globally on Egypt’s budget would range between LE 12 and 15 billion, Finance Minister Mohamed Maait told Asharq Business.
The budget for the current fiscal year will end on June 30, 2022.
The Ministry of Finance estimates the average price of a ton of wheat at $255 in the current fiscal year budget.
However, the Russian-Ukrainian war pushed wheat prices to record levels, reaching about $396 today, according to Market Insider.
Earlier, the General Authority for Supply Commodities decided to cancel an international tender to purchase wheat as a result of the price hike by about 31% after receiving only three offers. This is the second consecutive tender that has been canceled.
U.S. grain company Cargill offered the highest bid at $447 per ton (FOB), while France's Vitera bid $399 per ton, and France's Soufflet bid $389 per ton.
Egypt provides about two-thirds of its annual consumption of wheat through imports, and depends primarily on the two sides of the current war between Russia and Ukraine, as it provides about 80 percent of imports through these two markets only.
Wheat prices rose by LE 800 per ton to reach LE 6,200 on average, but there are no explanations for the increase, especially since the Ministry of Supply stressed more than once that there is no crisis in Egypt's strategic reserves of wheat.
According to statements by the Minister of Supply, Egypt has a stockpile of wheat that suffices for an average of 4 months. With the advent of the local harvest season, the ministry expects that its stock will rise to suffice until next October, as it purchases more than 3.5 million tons of the local crop annually.