The purchase and maintenance of strategic stocks of millable grain for human use was decided by the government, approving the proposal submitted by the Minister of Agriculture. Based on the decision, 9,800 metric tons of grain for human use will be preserved, covering the needs of 45 days, regardless of the amount of existing commercial stocks. The maximum total expenditure is estimated at €3,550,620 tons including the cost of storage for 12 months.
This decision strengthens the preparedness of the Republic of Cyprus in the face of ongoing geopolitical turbulence and uncertainties in the supply chain.
The precautionary and strategic nature of the measures was officially announced by the President of the Republic, Nikos Christodoulides, during his greeting at the anniversary event for the 10th anniversary of the Hatzigiorgis Mills Museum. President Christodoulides underlined that the state monitors on a weekly basis the commercial stocks maintained in the Cypriot market.
After referring to several peculiarities of the country, as an island, far from Europe, he noted, the geopolitical developments in the Middle East and the Black Sea, combined with the possible effects on supply chains, require increased preparedness. For this reason, he announced the creation of state strategic reserves of grain for human consumption capable of meeting the needs of the population for 45 days, in addition to and regardless of the quantities kept by private individuals.
According to the proposal of the Minister of Agriculture, Rural Development and Environment, Christos Senekis, to the Council of Ministers, the decision is based on a number of critical factors:
>> Ongoing military conflicts and tensions in the Middle East and the Black Sea pose risks to international grain trade.
>> The country's exclusive reliance on maritime transport for the import of essential goods makes the supply chain vulnerable to any delays in loading or arriving ships.
>> There is an increased demand for millable cereals from neighbouring countries to build up their own stocks, which may put pressure on available commercial stocks.
>> Despite the fact that the commercial stocks of domestic flour factories cover an average of 63 days, industry representatives pointed out that these cannot be considered as strategic due to market volatility. In times of crisis or delays in cargo, commercial reserves may fall sharply even below the 30-day mark.
The new decision modifies the previously approved framework, defining the quantity and duration for the purchase and preservation of flourishable wheat to meet the needs of the Republic for 45 days.
At the same time, these State stocks will be maintained irrespective of the level of commercial stocks held by importers and flour manufacturers.
The maintenance and storage of stocks will be entrusted to domestic flour industries and grain traders through open Public Procurement tenders.
The total maximum expenditure is estimated at €3,550,620. This amount includes both the cost of purchasing and transporting the grain and the cost of storing it for a period of 12 months. For the following years, the annual cost of storage and preservation is estimated at up to €411,600 per year.
In November 2025, the Council of Ministers had initially approved a relevant proposal to cover 60-day needs with an estimated expenditure of €5,500,000 and a storage cost of up to €650,000 per year.
However, the 2025 decision included the essential condition that the sovereign market would only be activated if individuals' commercial stocks fell below the 60-day threshold.
A review of the issue in 2026 led to the removal of this restrictive condition. The government has decided to maintain autonomous 45-day strategic reserves, ensuring that the state has direct control over food security, without depending on fluctuations in the private market.
It is noted that to date the Republic of Cyprus maintains strategic stocks only for animal feed, while for human use there are only the commercial stocks maintained by the flour mills.
The benefits for society and the economy
The adoption of the amended proposal brings multiple benefits
>> A strong protective shield is created to meet the population's needs for bread and basic flour derivatives in the event of an emergency or disruption of maritime supply chains.
>> By reducing the coverage period from 60 to 45 days, the required expenditure was significantly reduced by almost €2 million. (from €5.5 million to €3.55 million), optimizing the use of public funds.
>> The state acquires the flexibility to react immediately to international crises, preventing phenomena of artificial shortages or profiteering in the domestic market.
