KEY POINTS
- Egypt locks in 1.267 million tons of wheat through June 2025.
- Traders question transparency in procurement and volume claims.
- Egypt’s wheat reserves drop to three months’ worth of stock.
Egypt’s state grain buyer, Mostakbal Misr for Sustainable Development, has secured 1.267 million metric tons of wheat to meet the country’s needs through June 2025, primarily sourced from Russia.
Shipments have already begun arriving at ports, with more expected in the coming months. This move follows Egypt’s increasing reliance on imports to support its subsidized bread program for 70 million citizens.
Mostakbal Misr, established in 2022, was recently designated as Egypt’s sole importer of strategic commodities, replacing the long-standing General Authority for Supply Commodities (GASC).
However, traders have raised concerns about the reported figures, questioning whether the contracts represent entirely new deals or previously existing commitments.
Concerns grow over transparency in wheat procurement
While Mostakbal Misr has announced its wheat contracts, traders and analysts remain skeptical.
Some Russian exporters reported being unaware of the deals, and one European trader claimed the actual volume was closer to 480,000 metric tons, with purchases paid for in Egyptian pounds.
The lack of clarity has drawn attention, as Egypt’s strategic reserves have dwindled to three months’ worth of stock, down from seven months in mid-2024.
This reduction coincides with ongoing challenges in securing hard currency from international organizations that prefer dealing with civilian entities rather than government agencies.
Delays and shortfalls impact wheat import targets
Egypt’s wheat procurement strategy has faced delays, with only 410,000 metric tons of wheat delivered since September, falling short of the 3.8 million-ton target announced by Supply Minister Sherif Farouk.
According to Reuters, shipments initially expected in October were postponed, leaving gaps in the country’s reserve levels.
Despite the setbacks, the government insists that the Mostakbal Misr contracts will stabilize the nation’s wheat supply through mid-2025. However, questions linger over the timing, pricing, and transparency of these agreements.
