The Ministry of Supply and Internal Trade issued Ministerial Decree no. 49/2022 regulating the sale and government purchase of wheat in Egypt to promote the country’s self-reliance in light of the ongoing conflict between Russia and Ukraine, Egypt’s two largest wheat suppliers. Government buyers include the Egyptian Holding Company for Silos and Storage, General Company for Silos and Storage, milling companies affiliated to the Holding Company for Food Industries, and the Egyptian Agricultural Bank. The decree entered into force on March 17th.
The decree sets a new wheat purity requirement at 23.5 for wheat sold to government buyers. Additionally, all the owners of the wheat crops from the 2022 harvest season sell a mandatory 12 ardebs for each acre of registered agricultural wheat fields. Government buyers are now obligated to pay the farmers who supply the specified quantities within a maximum of 48 hours from the date of the quantities’ receipt.
Moreover, the owners are no longer able to sell the rest of the wheat without a license issued by the Ministry of Supply and Internal Trade, and such license should include the quantities, the purpose of purchasing, and the approved storage places.
Finally, those who sell at least 90% of their total 2022 wheat harvest to government buyers and who hold of more than 25 acres of wheat crops, will obtain subsidized fertilizers for the summer planting season. Individual and corporate wheat farmers may contact Hegazy and Partners for more information concerning the procedures to obtain a wheat sales license or for legal assistance concerning any payment disputes arising from the sale of wheat to government buyers.