Egypt allocates $1bn for local wheat purchase

CAIRO: The Egyptian government expects the domestic wheat harvest to reach 9.5 million tonnes and has allocated seven billion Egyptian pounds ($1 billion) to buy wheat from farmers, the agriculture minister was quoted as saying on Saturday.

Ayman Abu Hadid said in remarks published by the official Al Gomhuria newspaper the government would start its purchases in mid-April and pay farmers 420 pounds per Ardeb (150 kg) - around $400 a tonne.

Egypt typically buys 3.6 million tonnes of wheat a year from local farmers and around 10 million from abroad, making it the world's largest importer.

Last year it raised the fixed price it pays for local wheat to 420 pounds per ardeb from 400 pounds, with the aim of encouraging farmers to grow wheat and lessen reliance on imports.