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Supply commodities cost Egypt's government $4.6B in 2013/14

Government seeks to use Gulf aid to increase storage capacity of wheat as it comprises 70 percent of supply commodities budget

Ahram Online, Friday 28 Mar 2014
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File photo: A Container ship crosses the Suez Canal at Port Said (Photo: Reuters)
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The government's approved budget for supply commodities, including wheat, amounts to LE32 billion ($4.6 billion) for the current fiscal year.

Almost 70 percent of the budget is spent on storing, subsidising, and buying wheat both locally and internationally, Mahmoud Diab, advisor to the minister of supply, told Ahram Online on Friday.

The ministry is also working to increase silo storage capacity to minimise wheat loss.

Egypt's current silo storage capacity is 1.5 million tonnes but part of the LE34 billion ($4.9 billion) pledged by the United Arab Emirates to Egypt in its aid package is allocated toward the construction of 25 new wheat silos, each with a capacity of 60,000 tonnes. This would bring the country's storage capacity to 3 million tonnes by mid-2014.

The General Authority for Supply Commodities currently consumes nine million tonnes annually to provide subsidised bread, 3.6 million tonnes of which are supplied by local farmers while the remaining 5.4 million tonnes are imported.

 

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