Egypt to ban exports of flour, wheat for 3 months after March 11: ministry

Egypt's government has banned re-exports of wheat and flour exports for three months effective from a day after the notification is published on the official gazette on March 11, the Ministry of Trade and Industry said March 10.

The move is aimed at ensuring supplies of the food grain within the country, as supplies of wheat remained tight after Russia invaded Ukraine in Feb. 24. As a result of the conflict, wheat outflow from the Black Sea region has come to a halt.

Egypt is the world's largest wheat importer and relies on Russia and Ukraine to source a significant portion of their wheat requirement.

According to the US Department of Agriculture's Foreign Agricultural Services, Egypt is likely to import 12.4 million mt in marketing year 2021-22 (July-June), slightly higher on year from 12.1 million mt in MY 2020-21.

It also re-exports wheat and ships out wheat flour. The USDA's Foreign Agricultural Service has pegged Egypt's wheat exports in MY 2021-22 at 900,000 mt, up from 800,000 mt in the previous year.

The Egyptian government has been building up strategic reserves of wheat to meet its domestic needs for at least the next four months, Egyptian Prime Minister Mostafa Madbouly said on March 9.

Egypt aims to procure 5-5.5 million mt of local wheat from its fresh crops, set to hit markets in mid-April.

The government is trying to restrict shipping out of wheat and flour ahead of the holy month of Ramadan, when the demand for bread increases sharply. Ramadan starts April 2 this year.

Egypt usually consumes nearly 2 million mt of wheat per month, according to trade sources. The country has subsidized many foods items, including bread, since the 1950s. However, in recent years it has embarked on economic reforms that entailed the rationalization and reduction of subsidies.

It has also decided to ban exports of corn for the next three months. However, it is a minor player in the global corn market. The USDA has pegged Egypt's corn exports at 5,000 mt in MY 2021-22, down from 10,000 mt in the previous year.