Egypt Resumes Wheat Auctions to Stabilize Markets After 30-Month Pause
Egypt’s Ministry of Supply will restart wheat auctions on the Egyptian Mercantile Exchange next week after a 30-month pause, aiming to stabilize local markets and meet private millers’ needs. The move comes as flour prices begin to decline, with industry experts predicting a drop of up to 1,000 Egyptian pounds per ton. The ministry plans to auction approximately 10,000 tons of wheat in the initial session, priced between 16,600 and 16,650 pounds per ton, which is lower than the current free market rate of 16,900 to 17,000 pounds per ton.
The resumption of trading aims to address severe import bottlenecks and rising prices in the domestic market. Commercial bakeries have been bypassing government price controls, selling bread at unauthorized weights and prices to maintain profit margins. The General Authority for Supply Commodities (GASC) last traded imported wheat on the exchange in January 2024, suspending trading due to a significant price gap between state-held grain and private sector stock.
Shipping disruptions and challenges in sourcing wheat from Russia and Ukraine have led to a dramatic reduction in Egypt’s grain imports. National wheat imports fell by over 75% in July and August, totaling just 480,000 tons compared to 1.95 million tons in the same period in 2025. The decline worsened in September, with no incoming shipments recorded during the entire month. Hany Mekky, deputy head of the Bakeries Division at the Federation of Egyptian Chambers of Commerce, expects flour prices to drop by 500 to 1,000 pounds per ton once exchange trading begins at lower rates than the unregulated market.
Supply minister Sherif Farouk announced that the ministry will periodically release wheat tranches through the exchange to support unsubsidized flour production. This measure is designed to stabilize the production chain for unsubsidized native bread and fino rolls, ensuring regular processing inputs amid global market volatility.