Egypt Wheat Stocks Sufficient For 95 Days-Minister

Egypt, the world’s biggest wheat importer, has strategic stocks of nearly 2.3 million tonnes of the grain from international and local markets, enough to last until late May, the country’s supplies minister said on Wednesday.

“The strategic government stocks of local and imported wheat have dropped to 2.292 million tonnes, enough for 95 days or until 29 May 2013, compared to 101 days last week,” Bassem Ouda, supplies minister, said in a report presented to the cabinet.

Egypt’s wheat imports are sharply down this year as it endures economic and political crisis, but state and private buyers say the state is allocating priority financing for wheat imports. They are also pinning some of their hopes on an increase in domestic production.

Egypt has a history of bread riots but maintained supplies of heavily subsidized flat loaves – which sell to the poor for just 5 piastres (less than 1 U.S. cent) – throughout the popular uprising that overthrew president Hosni Mubarak in 2011.

President Mohamed Morsi’s government faces daunting economic problems. The Egyptian pound has fallen more than 8 percent since the start of January, and foreign currency reserves have tumbled to $13.6 billion in January from $36 billion before the fall of Mubarak.

In its last international tender on Feb. 20, Egypt, which normally buys strategically to ensure it has wheat stocks equal to at least six months’ consumption in its silos, bought 60,000 tonnes of U.S. Soft Red Winter wheat for shipment April 10-20.

Since Jan. 1, Egypt has bought 235,000 tonnes of wheat, about a third of what it purchased in the same period a year earlier.

Reuters