Egypt’s Supply Ministry has confirmed that it is considering adding wheat from India to the 16 other national import origins accepted by its state grains buyer this month in order to bolster purchases disrupted by Russia’s invasion of Ukraine, as it seeks to bolster purchases disrupted by Russia’s invasion of Ukraine.
According to Egypt’s Supply Ministry, a group from the Agriculture Ministry is in India “looking at phytosanitary procedures and analysing Indian grains in preparation for the certification of India as a wheat import origin.”
Egypt, which is frequently the world’s top wheat importer, normally purchases the grain through tenders organised by the General Authority for Supply Commodities, the country’s official grain buyer (GASC). Purchases help to fund significantly discounted bread for Egypt’s 60 million people.
Russia, Ukraine, France, Germany, Kazakhstan, and the United States are among the 16 certified wheat import origins in GASC’s tender book. Latvia was the most recent addition, having been joined in November of last year.
GASC frequently chooses Black Sea wheat above other origins because of its closeness, quality, and competitive rates. A unusual U.S. wheat bid was presented in its most recent tender, but it was not acquired.
The Russian invasion of Ukraine in late February increased world wheat prices and hindered Black Sea shipping, however Russian wheat exports continued in March. find out more
The Supply Ministry stated that future purchases of Indian wheat will be contingent on suppliers “making competitive bids at unique rates in GASC’s tenders, as well as the quantities given.”
India is aiming to capitalise on the void left by the Ukrainian conflict in the wheat export market. find out more Despite excess wheat supplies, India’s efforts to export big amounts on the global market have traditionally been thwarted by logistical constraints and quality issues.
“The Egyptian delegation’s presence indicates that they are serious about (purchasing wheat from India),” said Sudhanshu Pandey, India’s food ministry’s senior official, to Reuters.
Egypt has been in negotiations with France, Argentina, and the United States to diversify its purchasing.
According to some merchants, the government is considering a variety of options for purchasing wheat, including issuing limited origin tenders or making direct purchases outside of the tender structure.
GASC announced a restricted tender on Monday to acquire only wheat with European provenance. It cancelled two tenders soon after the Ukraine conflict began.
It’s unclear if the government would start making direct purchases, but dealers say Egypt’s regulatory system might stymie the process.