October 4, 2006

Egypt ups minimum price of wheat to EGP170 per ardeb

Egypt's Ministry of Social Security said it has raised the minimum price for local wheat to 170 Egyptian pounds (US$29.8) per ardeb (1 ardeb=5.619 bushels) from EGP165 an ardeb, Al Ahram newspaper reported Tuesday (Oct 3).

The government-run daily quoted the Minister Ali al-Meselhy as stating that local wheat procurement for the 2006/07 season would start mid-April with a minimum of EGP170 an ardeb and a maximum of EGP180 an ardeb, depending on the purity of the grain.

Egypt's main state wheat buyer, the General Authority for Supply Commodities, or GASC, bought 2.7 million tonnes of local wheat for the 2005/06 season.

Egypt consumes between 12 million and 13 million tonnes of wheat a year, and imports about half of its needs. It is projected to be the world's largest importer of wheat in 2006/07.

Wheat is planted in October and November and harvested in April and May. GASC is the only state wheat buyer that is allowed to buy domestic wheat.