Egypt: Wheat Consumption falls to 1.9 million T this Year

Wheat consumption in Egypt is on the decline, reaching 1.9 million tonnes in the current fiscal year, supply minister Khaled Hanafy announced Monday.

The new figures are approximately 23% less than earlier fiscal year 2013-2014.

During a press conference held Monday, the Egyptian minister stated that the total shipments for imported wheat during the current fiscal year also reduced to record 4.6 million tonnes, versus 6.4 million tonnes last year.

Egypt’s smart-card system for bread distribution is set to reduce wheat consumption and to ease the strain of subsidies on the government’s budget and foreign reserves.

The system has enabled the government to keep tabs on individual consumption of bread via the electronic cards, already used for other subsidized goods such as rice and sugar.

Under the new system Egyptians use electronic smart cards for bread purchases and around 20 different subsidised goods at grocery stores across the country. State-run bakeries sell bread at 5 piasters (0.7 cents) per piece.

Egypt is the world’s largest importer of wheat and the country’s supply is subject to price changes on the international market.

Food and energy subsidies traditionally eat up a quarter of state spending.