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Thursday, July 25, 2013

Egypt's wheat problem: how Mursi jeopardized the bread supply | Reuters

Egypt's wheat problem: how Mursi jeopardized the bread supply
| Reuters



Lack of money and a quixotic attempt at making Egypt self-sufficient spurred the decline, say officials familiar with the matter. Mursi dreamt of making Egypt grow all its own wheat and allowed imported stocks to fall to precariously low levels. It hurt both the country's wheat stocks and Mursi's government.
With a quarter of Egypt's 84 million people living below the poverty line of $1.65 a day, millions depend on subsidized bread that sells for less than 1 U.S. cent per loaf. That supply relies on foreign wheat.
The country is the world's largest wheat importer, bringing in about 10 million tonnes a year, around half its annual consumption. Keeping the system running smoothly was vital when Mursi, backed by the Islamist Muslim Brotherhood, took over as president in June 2012.

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