The Chamber of Grain Industry, headed by Representative Tarek Hassanein, Chairman of the Chamber’s Board of Directors at the Federation of Egyptian Industries, announced the success of the Egyptian Commodities Exchange, which was launched by the Ministry of Supply and Internal Trade, led by Dr. 123 mills are members of the Grain Industry Chamber of the Commodity Exchange.
Tariq Hassanein said that the Ministry of Supply is currently receiving wheat from farmers to enhance the strategic stock of wheat intended for the production of subsidized bread, through 420 receiving points at the level of the governorates of the Republic, varying between vertical and field silos, hangers, bakers, developed stores and mill silos, with The Ministry provides all facilities to farmers to ensure an increase in supply rates, as the Ministry has capacities and storage capacities and includes all sites, silos, hangers and banks belonging to the Ministry of Supply and to the marketing authorities.
Abdel Ghaffar El Salamouny, Vice Chairman of the Board of Directors of the Grain Industry Chamber of the Federation of Egyptian Industries, explained that the proactive measures taken by the government, represented by the Ministry of Supply and Internal Trade, led by Dr.
He pointed out that with the continuation of wheat trading and an increase in the quantities offered on the Egyptian Commodity Exchange platform, this will lead to a decrease in prices again, as the Egyptian Commodity Exchange contributed to reducing the prices of flour extracted by 72% during the past days, to 13.5 thousand and 14 thousand pounds per ton instead of 14.5 One thousand and 15 thousand pounds per ton, which positively affects the prices of products such as bread, dough, baked goods and sweets, for the benefit of the consumer.
Abdul Ghaffar Al-Salamouni added that the Ministry of Supply, represented by the General Authority for Supply Commodities, decided to increase the offering of wheat quantities traded on the commodity exchange from an estimated amount of 13 thousand tons to 15 thousand tons of wheat in each session, as wheat is traded in two sessions per week, “Sunday and Wednesday.”
He pointed out that it is expected that the quantities of wheat traded on the commodity exchange will increase to 20,000 tons of wheat per session, after the Chamber of Grain Industry presented a memorandum to the Minister of Supply and Internal Trade, stating that flour prices fell after wheat was traded on the commodity exchange and demanding an increase in the quantities offered of wheat on the stock exchange. Which will lead to a decrease in the prices of flour in the market once again, and the prices of bran rose by 2000 pounds per ton.
He pointed out that despite the difficult global conditions as a result of the Russian-Ukrainian war, which led to negative impacts on the supply chains of main commodities, especially wheat, corn, fodder and oils, which led to an increase in the prices of basic commodities, in addition to an increase in the price of the dollar against the Egyptian pound, which led to a direct impact on commodities. Nevertheless, the Egyptian state succeeded over the past period, under the directives of President Abdel Fattah El-Sisi, in crossing the country to safety in providing all food commodities.
Abdel-Ghaffar Al-Salamouni indicated that the Minister of Supply and Internal Trade directed the directors of directorates in all governorates at the level of the Republic to facilitate the procedures for supplying local wheat from farmers and to pay the dues of suppliers in a timely manner within a maximum of 48 hours, in addition to following up the leaders in the Ministries of Supply, Agriculture, Finance and Supply Investigation (General Administration). Daily operations of supplying local wheat and removing obstacles in all locations to achieve the largest target of wheat supply for the wheat season 2023, with attention to all farmers, agricultural associations, merchants and suppliers to solve any problem or complaint throughout the season period, which leads to an increase in daily supply rates
He praised the efforts to increase the storage capacity of wheat inside silos to approximately 3.6 million tons under the directives of the political leadership, after it did not exceed 1.2 tons before 2014, in addition to the storage capacity of hangers and banks, as the rate of wheat loss in the past ranged from 10 to 15%. Because of poor storage in open places, and after the state adopted the national project for silos, it contributed to reducing the quantities of wheat that were wasted.
He added that the ministry aims to establish new silos with a storage capacity of 600 thousand tons, bringing the total storage capacity of wheat in the ministry’s silos to more than 4 million tons, in addition to the presence of silos in the private sector with a storage capacity of close to one million tons as well, which confirms the extent of the current political leadership’s interest in the commodity. It is considered one of the most important strategic commodities. It is the local wheat commodity, which is intended for the production of well-fortified bread that conforms to standard specifications.