August 13, 2004

Egypt GASC Bought 1.8 Million MT Of 2003-04 Domestic Wheat Crop

Egypt's main-state wheat buyer, the General Authority for Supply Commodities, or GASC, has bought a total of 1.8 million metric tons of local wheat so far this crop year, GASC's general manager, Nomani Nomani, revealed Thursday.

Egypt raised the price it pays for wheat from local growers in the 2003- 04 season by 31.8% as part of its policy to encourage self-sufficiency in key commodities, though last year to this point GASC bought 1.9 million tons since the beginning of the harvest in mid-April.

Wheat is planted in October and November, and harvested in April and May in Egypt.

GASC is the only state wheat buyer that is allowed to buy domestic wheat. GASC uses a mixture of corn and wheat to produce subsidized bread. Corn accounts for about 20% of the mix.

Egypt is forecast to import seven million tons of wheat during the 2004-05 marketing year, according to the latest report from the International Grains Council. GASC purchases account for the bulk of Egypt's imports.