Ahmed Kamel – Egypt Daily News
The Egyptian government has announced an additional EGP 4 billion allocation to support local wheat farmers, raising the procurement price of wheat as part of a broader social protection package aimed at cushioning citizens from rising economic pressures.
Speaking as part of the new measures directed by President Abdel Fattah el-Sisi, Finance Minister Ahmed Kouchouk said the state would increase the procurement price of an ardeb of wheat from EGP 2,200 to EGP 2,350 an increase of EGP 150 per ardeb. The move is designed to ease financial burdens on farmers facing higher production costs, including fertilizers, fuel and labor.
The price adjustment will apply to targeted quantities estimated at nearly four million tons during the upcoming harvest season. According to the Ministry of Finance, the treasury will bear approximately EGP 4 billion in additional costs to finance the higher procurement rate through the end of the current fiscal year.
Officials framed the decision as both an economic and strategic measure. By raising the guaranteed purchase price for local wheat, the government aims to send a strong signal in support of domestic producers, encourage farmers to expand cultivated areas, and reduce reliance on imported grain, a long-standing vulnerability for one of the world’s largest wheat importers.
Egypt’s food security strategy has come under increasing pressure in recent years due to global supply disruptions, currency constraints and rising commodity prices. The country relies heavily on wheat imports to supply its extensive subsidized bread program, which serves tens of millions of citizens. Any fluctuations in global grain markets or foreign currency availability directly affect the state budget and inflation levels.
Agricultural economists note that improving procurement prices can help stabilize domestic supply by making wheat cultivation more attractive relative to other crops. However, they also point out that pricing policies must be accompanied by broader structural reforms, including improvements in irrigation efficiency, storage infrastructure and supply chain management, to maximize productivity gains.
The government has repeatedly emphasized the importance of boosting local production to narrow the gap between domestic output and consumption. Increasing the procurement price is expected not only to enhance farmers’ income security but also to strengthen national reserves and mitigate pressure on foreign exchange reserves by lowering import volumes.
The wheat support measure forms part of a wider social protection framework that seeks to balance fiscal discipline with targeted assistance, particularly for productive sectors and lower-income groups. By underwriting higher purchase prices, the state effectively absorbs part of the cost burden that would otherwise fall on farmers or translate into higher food prices.
With the next harvest season approaching, the success of the initiative will likely be measured by the volume of wheat delivered to state silos and the degree to which expanded cultivation materializes on the ground. For policymakers, the EGP 4 billion allocation represents both a financial commitment and a strategic investment in agricultural resilience at a time of heightened global uncertainty.
