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GASC's strategy of
operation
GASC's strategy attempts to activate the market
mechanisms both on the local and global levels to secure
its needs of wheat and flower, aiming at:
• Enhancing productivity and raising the efficiency of
agricultural production
• Enhancing the marketing and promotional services.
• Accumulating a strategic (governmental) food inventory
• Realizing structural adaptation in the country's
marketing system.
GASC offered tenders to purchase wheat from the foreign
markets, using hard foreign currency at the countries of
origin, in addition to purchasing locally using local
currency. GASC's purchases are cleared at all Egyptian
ports, which allows some countries of origin to offer
their commodities in a competitive economic price.
The above mentioned system allows the Arab Republic of
Egypt to secure its needs and get a just share of
grains, activate competition and prevent monopoly by
tenderer in addition to preventing monopoly control from
some origins in order to lower prices to the least
possible level (least paid invoice possible).
The State seeks to encourage the private sector to
contribute in covering a share of the country's needs of
the wheat (82% extraction) through tenders and general
--- offered through the Social Solidarity Ministry and
financed by GASC. This is affected in some governorates
leading to the least possible cost for the commodity (
Wheat flower extraction 82%, the full product with
standard specifications
It is worth mentioning that the Arab Republic of Egypt
rationalizes the price of providing the commodity and
rationalizes the subsidize assigned for protecting the
producer, the marketer and the consumer, and aims to
constrain the exaggerated increase in prices and create
local market balances using the following kinds of
subsidizes:
1. Indirect subsidizes offered to farmers in the form of
the price differences (surplus price differences) paid
by the state for buying certain kinds of local
agricultural products in excess of the global price for
these products.
2. An indirect marketing subsidizes in the form of the
price differences covered by the state to pay for the
marketing services in excess of their equivalent prices
in the global market
3. Direct subsidizes in the form of direct cost due to
the maintenance of the inventories and recycling these
inventories to face possible catastrophes and expected
needed food aid.
In light of the above mentioned mechanisms the Consumer
Protection Agency was established beside the civil and
popular control agencies like the consumer protection
societies and other agencies under the framework of a
new law promulgated for consumer protection and monopoly
prevention.
Legislations
1. The Law establishing the General Agency for Supply
Commodities
2. The Agency operates according to law No. 47 for the
year 1978 for Civil Servants and its amendments
3. Law No. 89 for the year 1998 concerning auctions and
tenders
Ministerial Decrees
Ministerial Decree No. 373 forming the Committee for
Wheat Procurement Decisions
Agreement
No agreements were concluded during this year between
GASC and other parties.
Guidelines
The General Authority for Supply Commodities informs the
Ministry of Industry and Commerce by the prices of
supply commodities, as they are globally announced in
the different commodity exchanges weekly. |
