ABU DHABI: Egypt, one of the world's largest wheat importers, said on Thursday its stocks had increased to six months worth, after its Supply Ministry had said in March it had enough to last only until the end of June.
"Through what we have purchased locally and our import contracts, we now have enough wheat to last until the beginning of next year," ministry spokesman Mahmoud Diab said.
Deposed President Mohamed Mursi's administration had cut imports significantly as it bet on a higher domestic crop, a move sharply criticised by the current government.
Immediately after Mursi's removal last July, the new government pledged to increase imports in order to restore dwindling wheat stocks, which officials said jeopardized bread supply.
GASC continued issuing import tenders throughout its local purchasing season in May and June, when traditionally Egypt used to remain out of global markets to focus on buying wheat from Egyptian farmers.
"They needed to rebuild to six months' stocks," one European trader said.
Egypt purchased 3.7 million tonnes of local wheat and also bought 5.46 million tonnes of wheat from abroad during the 2013-2014 fiscal year which ended June 30.
In the new 2014-2015 fiscal year since then, the main state grain buyer, the General Authority for Supply Commodities (GASC), has held two tenders and bought 480,000 tonnes of Romanian and Russian wheat.
Egypt's state-run statistics body said in March that wheat stocks had dropped 34.1 percent in the 2012-2013 year falling to 1.07 million tonnes from 1.62 million tonnes the previous year.
GASC typically buys around 5.5 million tonnes of wheat a year.
"I think Egypt is taking advantage of current low prices to build up its supply cover," another European trader said.
"The government needs to keep its stocks at a minimum level and at a time when the country is financially strained it is sensible to get purchases for the delivery positions they almost always purchase at attractive prices."
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