Egypt: World wheat crisis will not affect bread prices
Egypt's Minister of Social Solidarity, Dr. Ali Meselhi stated the rise in wheat prices in world markets will not affect the provision of subsidized bread to the Egyptian population. In a related development, the Egyptian General Authority for Supply Commodities, said it had bought 240 thousand tons of French wheat to be shiped for the period 1 to 15 September, 2010.
The Vice-Chairman of the Commission and Nomani Nomani said the agency contracted to four shipments of 60 thousand tons at a tender of between 279.69 dollars per ton to 283.69 dollars per ton FOB.
A drought in Russia, one of the biggest wheat suppliers, has prompted the Russian government to ban the export of wheat.
On the other hand, the Kazakh government said it had agreed to cover the wheat supply contracts concluded between Russia and Egypt at as the the Russian government said it would re-consider the decision to ban the export of grain early October.
Minister Meselhi added that Egypt has multiple sources to import wheat and it does not rely on one country. He assured the Egyptians regarding the sufficiency of the strategic wheat reserves saying they cover a period of 3 to 5 months as well as approved future contracts.