Egypt, the world’s largest wheat importer, set the wheat procurement price for next year's harvest at EGP 450 per ardeb (150 kilos), 7 percent higher than in the past years in local currency terms and slightly above the current level in the international market. However, following the sharp currency depreciation in early November, after the decision of the Central Bank of Egypt to let float the Egyptian pound, the current purchasing price in USD (corresponding to about USD 195 per tonne) is significantly lower than last year’s purchasing price of about USD 280 per tonne. Last year in November, the Government had approved the replacement of the procurement price policy with direct subsidies to farmers (FPMA Food Policies) and the purchasing of the local wheat harvest at the average international price prevailing during the harvest time (April-June). However, the decision was subsequently reversed and the procurement policy reinstated to encourage farmers to increase the area planted to wheat.The Government also increased rice procurement price by 25 percent.