The Ministry of Supply has contracted to import 180,000 tons of Romanian and Russian wheat to produce subsidized bread; the contract is the second this week, Youm7 reported Saturday.
The ministry has launched a global tender, in which several local and international companies participated, where the bids were accepted according to “high quality and low price presented.”
“These global tenders come as part of the state’s plan to increasingly secure Egypt’s need for wheat to produce subsidized bread and not rely on a single source,” Minister of Supply, Khaled Hanafy, told Youm7.
The 180,000 tons of wheat are divided as: 120,000 Russian and 60,000 Romanian, with an average cost of $207.34 per ton. The importing will begin by Nov. 11 through Nov. 20.
The first accepted bid this week was to buy 175,000 tons Ukranian wheat and 60,000 tons of Russian wheat, with average of $199 per each ton.
Strategic reserve of wheat enough until mid-March
Egypt’s strategic reserve of local and imported wheat to produce subsidized bread will be sufficient until mid-March 2016, Minister Hanafy told Youm7.
He added that there are inspection procedures taken by hired international companies at shipping ports to ensure the contracts’ terms meeting required quality and validity.
National project to preserve wheat
Hanafy said that a factory will be established to produce modern silos, with plans to export to other countries in the region.
Furthermore, a total of 61 silos to store wheat and reduce waste are being built with capacity of 2.78 million tons of the grain.
In addition, a number of silos and storage domes will also be constructed in the Logistics Center for Grains, which is to be built in Damietta governorate, with an expected increase of storage capacity mounting to 7 million tons.