Government imports 400,000 tons of wheat at a “low” price

Government resorted to the acquisition of 400,000 tons of wheat from the Euro zone, which is a large quantity that will be stored in anticipation of the fall and winter, because the prices of this strategic product will notice an increase in the international market, at a time when prices are noticing some sort of decline that equaled 158 Euros per ton versus 198 Euros in last March, especially as the national cereals’ production is still not able to cover the needs of the national market, as Algeria produces half of its needs and resorts to importing the other half from abroad.

French news agency confirmed that Algeria resorted, according to a tender that it announced on last week end, to the acquisition of 400.000 tons of wheat from the Euro zone, as it was agreed on the price that ranged between $195 and $ 196 per ton, with the mandatory shipping on next October and November, which are reasonable prices, as the Professional National Office for Grains rise took advantage of the rise in the dollar’s exchange rate against the Euro to reduce it to 158 Euros compared to 194 Euros on last March, which are record rates, as the Office bought this large quantity in anticipation of a rise in grain prices in the coming months.

Algeria imported, during the first seven months of the current year, over 7.8 million tons of grains, including 4.9 million tons of hard and soft wheat, compared to a financial cover of $ 1.5 billion of the total amount of import (equivalent to 2.108 billion dollars), with the knowledge that grains’ production rose during the period between 2014 and 2015 to 40 million quintals compared with 35 million quintals during the season 2013/2014, and the rate of increase is estimated to 14.3%, according to the latest figures of the Professional National Office for Grains.

It should be noted that Algeria was able, for the first time during this year, to achieve a large production of wheat compared with last year, which contributed to cover half of the national market’s needs, under the fiery statements of the Agriculture Ministry on the sector’s officials, who emphasized the need to increase production and achieve food security in the light of what is traded on the indicators of economic and financial crisis due to the oil price’s collapse, knowing that the highest percentage of wheat production was registered in 2009 (60 million quintals).