Egypt aims to cut wheat imports, slash bread subsidy costs
Updated 10/7/2024 4:01:00 AM
Arab Finance: Egypt is planning to reduce wheat import and spend less by incorporating corn or sorghum into the ingredients of subsidized bread, five sources in the know told Reuters.
The new proposal is part of the government's efforts to ease the financial strain of its bread subsidy program amidst rising debt, inflation, and a foreign currency shortage.
The Ministry of Supply’s plan, which was presented to bakeries and millers in late September, suggests mixing corn flour with wheat flour at a ratio of 1:4 starting April 2025.
This initiative could potentially save the country up to 1 million tons of wheat annually.
However, the proposal faces resistance from bakers and millers who argue it may compromise bread quality and result in financial losses.
If successfully implemented, the use of locally grown corn could provide significant savings in foreign currency.
Russian wheat, which Egypt relies on heavily, costs around $220 per ton, while corn is priced at approximately $200 per ton, according to London Stock Exchange Group data.
Despite these potential savings, concerns remain about the public’s acceptance of the new bread texture and taste.
The Ministry of Supply requires around 8.25 million tons of wheat annually to provide subsidized bread to more than 70 million Egyptians, importing over half of this amount.
Recently, the General Authority for Supply Commodities (GASC) secured one of its largest ever direct wheat deals, with shipments totaling 3.12 million tons, for delivery between November 2024 and April 2025.
Related News
