Egypt’s strategic commodities reserves are sufficient for several months: Supply minister

Ahram Online , Sunday 20 Aug 2023

Egypt’s Minister of Supply and Internal Trade Ali Moselhi revealed to the press on Sunday that the country's strategic commodities reserves are sufficient to meet consumption needs for several months.

File Photo: A farmer harvests wheat on a field in the El-Menoufia governorate, about 99 km (62 miles) north of Cairo in this April 23, 2013. Reuters


Rice reserves in Egypt are ample to cover consumption needs for a period of nearly 3.3 months, and will be distributed at a price of EGP 20 per kilogram in the markets, said Moselhi.

The minister added that the new season will commence in mid-September and that the area used for rice cultivation has reached 1.6 million acres, while Egyptian consumption amounts to about 1.3 million acres.

As for wheat, the strategic reserves are adequate for 4.7 months, Moselhi revealed, emphasizing that the ministry will not allow reserves to fall below a minimum of 4 months, and intends to increase them to 6 months.

On Saturday, President El-Sisi stated that Egypt's annual wheat consumption might exceed 20 million tons this year and that the country will need to import at least half of this.

This is despite the country having over three million feddans (one feddan is equal to 1.038 acres) under cultivation nationwide, added El-Sisi.

Moselhi also stated that Egypt has a strategic reserve of sugar that will cover local needs until next April.

Regarding fluctuations in sugar prices, the supply minister explained to the press that global sugar prices are linked to petroleum prices, noting that when gasoline prices increase, some countries like Brazil, the world's largest sugar producer, convert it into ethanol, which is considered a clean fuel.

Concerning food oils, Moselhi stated that current reserves can cover local consumption for 3.9 months, noting that Egypt imports around 97 percent of its oil needs. 

He also pointed out the availability of poultry and meat, owing to agreements with several countries, including Brazil and India, to secure reserves.

Egypt imports frozen poultry from Brazil due to its lower prices resulting from decreased tariffs between the two countries, Moselhi explained. 

As for meat, Moselhi confirmed that Egypt has contracts covering the next 18 months of imports, including with Djibouti, and will import some 2.3 months' worth of frozen meat from India and Brazil.

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