Egypt has witnessed a notable increase in wheat imports, surpassing a million metric tons in 2023, according to data obtained by Reuters. Traders attribute this rise to a decline in global wheat prices, which had previously soared following Russia’s invasion of Ukraine.
As one of the world’s leading wheat importers, Egypt relies on the grain to produce heavily subsidized bread, accessible to over two-thirds of its 105 million population. The data reveals that Egypt imported approximately 10.88 million tons of wheat in 2023, marking a 14.7% increase from the 9.48 million tons recorded in 2022.
The surge is primarily attributed to a 26% jump in shipments delivered to the state buyer, the General Authority for Supply Commodities (GASC), totaling around 5.6 million tons. Imports by the private sector also experienced a modest uptick, rising by 1.3% to 5.12 million tons.
Hesham Soliman, president of Egyptian merchant Mediterranean Star, explained that the low imports in 2022 were a result of high prices and a foreign exchange crunch following the war in Ukraine. The foreign exchange crisis left importers unable to make significant purchases.
Despite a growing population and increased demand, Egypt’s chronic shortage of foreign currency restrained a more substantial surge in wheat imports. In 2022, the total wheat imports had plummeted by 18.7% to about 9.5 million tons, the lowest since 2013.
Most of the 2023 imports originated from Russia, accounting for 69.5% of the total, with shipments rising by 39.5% to 7.56 million tons. Wheat imports from Ukraine also saw a rise, reaching 1.28 million tons after a dip to 845,587 tons in 2022.
Soliman highlighted that the increase in imports was partly due to GASC purchasing more wheat to sell to the private sector through the Egyptian Mercantile Exchange (EMX). The exchange, initiated in November 2022, aims to address price distortions in the private sector after a surge in the price of unsubsidized bread. GASC plays a crucial role by selling wheat from its reserves to support private sector mills.
