As end of local harvest approaches, Egypt buys 465,000 tons of wheat from Russia, Bulgaria, Romania

Egypt’s government — grappling to ensure food security as war on the Black Sea endangers export routes and inflation pushes up the cost of staple imports — contracted on Wednesday to buy 465,000 tons of Romanian, Bulgarian and Russian wheat.

Wednesday’s purchase represents an apparent about-face, as Supply Minister Ali Meselhy had announced to journalists in mid-May that Egypt would not import any more wheat “right now” since “goodness is at hand.”

Russia’s invasion of Ukraine in February posed an indirect threat to Egypt, as the conflict put two of the world’s largest wheat exporters out of the reach of Egypt, the world’s largest wheat importer. Together, the two Black Sea countries represented the source of around 80 percent of Egypt’s annual 9 million tons of government wheat procurement, which goes toward supplying the flour used for a bread subsidy program used by over two-thirds of the population.

Officials turned at first to local farmers, increasing by over 50 percent the amount they planned to procure during the current harvest.

But Wednesday’s import deal reflects insufficient strategic stocks, a source in the grain sector told Mada Masr on condition of anonymity. The tender also casts doubt on the government’s aim to amass 5.5 million tons of local wheat before the end of the harvest season in mid-June, added the source.

On Tuesday, the General Authority for Supply Commodities put out a tender for an unlimited quantity of wheat shipments, open for bids from any of the 22 countries approved to import to Egypt. 

It sealed deals the next day for eight shipments of wheat from Romania, Russia and Bulgaria totaling 465,000 tons at a price of US$480 per ton, including the cost of shipping to Egyptian ports on the Mediterranean coast. The Russian and Romanian wheat will be shipped between July 20 and August 10, while the Bulgarian wheat is to arrive in Egypt between August 1 and 20.

Shipments of a total 350,000 tons are due to arrive in the coming fortnight from France, Bulgaria and Russia — the result of an April tender by the supply commodities authority.