Egypt: Wheat Reserves are Sufficient After Russia’s Withdrawal from Grain Agreement

The Egyptian government has reassured citizens about the wheat reserves after Russia suspended the Black Sea Grain Initiative.

Minister of Supply and Internal Trade, Ali al-Mosilhy, said Egypt’s strategic wheat reserves are sufficient for five months of consumption.

Moselhi criticized Russia’s withdrawal from the UN grain-export deal, saying Egypt was not pleased.

He explained that transport, logistics, and cargo insurance are the most affected sectors.

The Minister was speaking on the sidelines of the 16th session of the General Assembly of the intra-Africa metrology system (AFRIMETS).

He admitted the withdrawal would impact Egypt and other African countries, especially since many states had difficulty importing wheat.

Mosilhy expected an 8-percent global hike in the price of a ton of wheat, pointing out that the Egyptian government would bear any price differences and it would not affect the citizen.

He pointed out that Egypt started signing agreements with India to import wheat and sugar, explaining that Egypt was keen on having multiple wheat sources, including France, Germany, Romania, US, and Bulgaria.

The Minister noted that the local wheat supply amounted to 3.8 million tons.

Meanwhile, agricultural expert Ashraf Kamal believes maintaining a safe strategic wheat stock is essential.

Kamal told Asharq Al-Awsat that wheat stocks have declined globally after the supply chain and Russian-Ukrainian war crises.

Russia and Ukraine represent about 30 percent of global grain exports.

He explained that the state must follow two main paths to ensure wheat strategic reserve: diversifying the supply sources and wheat origins and increasing self-sufficiency.

Following presidential directives, the Egyptian state is moving to provide remunerative wheat prices by increasing the cost of last year’s cultivated ardeb.

The state also introduced new areas planted with wheat, said the expert, pointing out that the Ministry of Supply aimed to purchase more than 4 million tons of grain from Egyptian farmers this season.

Kamal asserted that the government must continue supporting farmers, increasing the state’s purchase prices and announcing it well before the planting season.

Tags: Ukraine, Russia, Egypt, price, wheat, reserves, consumption, sufficient, Black Sea Grain Initiative