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FINANCIAL NEWS
Egypt wheat stocks enough for barely 3 months
16 Mar 2013
(MENAFN) An official report showed that Egypt’s strategic stocks of wheat only cover 89 days, Reuters reported.
According to the cabinets report, the strategic wheat stocks stand at 2.207 million tonnes from international and local markets, compared with stocks of 2.292 million tonnes, or 95 days cover, reported on February 27.
This was because Egypt sharply cut its wheat this year as the country struggles through a political and economic crisis.
Egypt normally buys strategically to ensure that it has wheat stocks equal to at least six months’ consumption in its silos.
However, the Egyptian pound has fallen more than 8 percent since the end of last year, pushing up the cost of imports of wheat paid for in dollars, while foreign currency reserves are at critically low levels and the crisis has made it harder for Egypt to arrange payments.
Egypt has imported around 235,000 tonnes of wheat on the international market between January 1 and February 20, two thirds lower than what it purchased in the same period a year ago.
Egypt relies on wheat imports to secure half of what its 84 million people consume.
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