Egypt’s domestic wheat purchases from local farmers have reached an all-time high, putting the country on track to hit its 5 million metric ton target this season following aggressive agricultural policy shifts designed to reduce reliance on foreign grain.

Government data shows officials have already bought 4.6 million tons of wheat since the harvest began in mid-April. Prime Minister Mostafa Madbouly said in a statement that the current volume, which runs through mid-August, has already surpassed last year’s full-season totals.

Wheat price premium boosts domestic supply

As one of the world’s largest wheat buyers, Egypt typically imports roughly 10 million tons annually. About half goes toward a state bread subsidy program supporting 70 million citizens. The state purchasing push aims to ease foreign currency shortages and reduce heavy pressure on the national budget.

The policy shift started last August when Cairo raised local purchase prices by 7 percent. A subsequent increase in March brought the state price to roughly $320 per ton, a substantial premium over international market rates, which recent LSEG data pegged at $234 to $240 per ton.

“The price was very attractive and encouraged a record planted area,” said Hussein Abu Saddam, a farmer in the southern Minya province. Grains trader Hesham Soliman noted the premium also stopped farmers from diverting crops to private traders or animal feed.

Egypt’s record wheat acreage drives yields

Ahmad Idam, a senior agriculture ministry official, told Reuters that cultivated wheat land grew to a record 3.7 million feddans, up from 3.1 million last year. Favorable weather and better seed varieties also lifted average crop yields across core farming regions.

Abu Saddam reported his family farm produced 24 ardebs per feddan, up from 22 last year, allowing them to sell 600 ardebs to the government. An economist added that reducing post-harvest waste through logistical upgrades also saved significant volume this season.

A major driver of this season’s volume was the Future of Egypt for Sustainable Development agency. The military-linked authority, which oversees desert land reclamation, delivered 530,000 tons of wheat by Thursday, up from 200,000 tons over the same period last year.

Egypt shifts strategy on bread subsidies

While domestic buying rose, Egypt also increased imports during the first five months of the year. Total government procurement from local farmers stood at 3.9 million tons last year. Future import needs may shift depending on an upcoming policy decision regarding whether the government will replace its traditional bread subsidies with direct cash transfers to citizens.

Simultaneously, Cairo is advancing plans to turn Egypt into a regional grain logistics and storage hub serving the Middle East and Africa. The strategy relies heavily on deepening economic ties with Moscow to secure long-term food supplies amid global market disruptions.

The plan involves building modern grain elevators, expanding processing plants, and upgrading transport links. This follows a recent agreement between Russia’s SPIMEX and the Egyptian Mercantile Exchange to develop a joint trading platform that could reduce local reliance on the U.S. dollar.