Egypt's government has purchased 1.15 million tonnes of wheat since the beginning of the harvest season in mid-April, 800,000 tonnes of which were procured in the first five days, a cabinet statement said on Saturday.
The Principle Bank for Development and Agricultural Credit (PBDAC) paid the farmers EGP300 million as of Saturday and plans to pay a further EGP300 million on Sunday, said the statement.
The government said it would procure local supplies this year at the subsidised price of EGP 410 to EGP 420 per ardeb (150 kg), depending on quality, reversing its decision to replace the crop subsidy with a land subsidy of EGP 1,300 per feddan (roughly one acre) of wheat grown.
The world's largest wheat importer had banned the trading of imported wheat in the domestic market without permission from the supply ministry during this year's harvest season, from April to July.
Last year, the government purchased a record 5.3 million tonnes of domestic wheat, up from 3.7 million tonnes purchased a year prior, at the subsidised price of EGP 420 per tonne.
The government expects to buy a total of 4 million tonnes of wheat this season.