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Wednesday, 11 October 2017

Gov’t to peg prices of harvested wheat to the global market

Gov’t to peg prices of harvested wheat to the global market: It would appear that under the new bread subsidy system the government will be pegging the price of wheat it purchases from farmers to the global market price, according to statements attributed to Agriculture Minister Abdel Moneim El Banna by Al Borsa. The move was naturally met with disdain, with members of the House of Representatives’ Agriculture Committee along with a number of grower’s associations have called on the government to raise the price it pays to farmer for a number of goods including wheat. Agriculture associations have been demanding that the government pay EGP 650 per ardib, up from EGP 565 during the previous harvest season. El Banna had said that pegging wheat prices to the global market would make it impossible to set a purchase until the harvest season begins in April.

Separately, the House Agriculture Committee is also pushing for the government to raise prices on sugar beets and sugarcane from farmers, calling for beets to be bought at EGP 700 per tonne and sugarcane be purchased at EGP 1000 per tonne. The government is considering the proposal, said El Banna.

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