April 22, 2014

Egypt's local wheat crop estimates drop to nine million tonnes

Egypt estimates its local wheat crop at nine million tonnes, lower than the 9.5 million tonnes the Agriculture Minister has predicted, according to a state newspaper that cited a government report.

Traders surveyed in a Reuters poll estimated this year's crop at around seven million tonnes, in line with the previous harvest. The government's estimates are consistently below those of private traders.

Egypt, the world's biggest wheat importer, is aiming to boost domestic production in an effort to cut its import bill.

The state and private buyers purchase around 10 million tonnes from abroad annually.

Some 3.2 million feddans (1.34 million hectares) of land had been planted with the strategic crop this year, the official Al-Ahram newspaper said on its website, citing a report by the Agriculture Ministry and the State Ministry for Scientific Research.

The government began buying wheat from local farmers last week during a harvest season that runs through June. It has set aside about US$1.4 billion. It has said it aims to purchase four million tonnes of the local crop.

Each year, it typically buys 3.6 million tonnes of wheat from farmers for a subsidised bread programme that feeds millions.

Agriculture Minister Ayman Abou Hadid was quoted by official media last month saying that the government expected the harvest to reach 9.5 million tonnes.