Egypt’s journey to achieve wheat self-sufficiency

Egypt’s journey to achieve wheat self-sufficiency

The Egyptian government decided on April 12th to increase the local wheat procurement price by EGP 250 per ardeb (equivalent to 150 kilograms). This 20% increase brought the price of wheat to EGP 1,500 per ardeb for the 2023 season.

The cabinet has been monetary motivating local farmers since the beginning of the Russian-Ukrainian War in February 2022 to supply their wheat harvest to the government. In this Factsheet, Arab Finance will present to you how local wheat production supported Egypt’s food security amid the recent global crisis.

- Wheat grains were first cultivated in the times of Pharos, and since then, wheat bread has been an essential food for Egyptians. In season 2021/2022, Egypt’s consumption of wheat reached 20 million tons, while the local production recorded 9 million tons.

- The government subsidized the local consumption of wheat flour and bread with EGP 54 billion, acquiring 60% of the food subsidy in fiscal year (FY) 2022/2023 budget.

- The local supply-demand gap is filled by imports. In 2021, Egypt was the world’s sixth largest wheat importer, with a share of around 4% of global wheat imports, where Egypt’s imports amounted to $2.4 billion. As one of the largest wheat importers in the world,