Egypt Secures Strategic Stock of Commodities Despite COVID-19

Egypt succeeded in securing the strategic stock of commodities despite the negative repercussions of the coronavirus crisis on the local and global markets, according to a report by the Cabinet Media Center.

Egypt outlined well-studied mechanisms and plans to manage the strategic stock of commodities according to the best standards and international practices to meet citizens’ needs across the country.

The report reviewed contracts of essential commodities from March 2020 to July 2021, with a total contract value of EGP52.5 billion, including EGP30 billion for purchasing 7.2 million tons of wheat.

The country managed to diversify sources of its imported commodities as it imported wheat from Russia, Ukraine, France and Romania and beans from Australia and England.

Cooking oil is imported from Argentina, Russia, and Ukraine and there are contracts for locally producing the oil. Meats are imported from Sudan and Brazil, and frozen poultry from Brazil and Ukraine.

The report touched on the coverage period of consumption for strategic commodities, noting that it contributed to the relative stability of inflation.

Wheat was covered for six months, oils and pasta for five months each, while the coverage period for rice is 4.5 months, and sugar is 5.5 months, poultry 5.8 months, meat 20 months, and beans 2.8 months.

The report addressed the efforts increase commodity stocks, pointing to the project to establish seven strategic warehouses in two phases at the cost of EGP30 billion.

The project aims to increase the commodity stock to last between eight and nine months instead of four to six months, grow the strategic reserve of essential commodities, improve the production, distribution, and storage system.

Asharq Al-Awsat

Tags: Strategic Stock, Egypt, Covid-19