Egypt is optimistic about achieving its goal of importing approximately 3.8 million metric tonnes of wheat by the end of 2024. This will be accomplished through a mix of tenders, direct purchases, and government-to-government agreements, according to Supply Minister Sherif Farouk.
The General Authority for Supply Commodities (GASC), Egypt’s state grain buyer, initiated what traders are calling the largest tender ever by the world’s top wheat importer on August 6. Despite this, on August 12, Egypt reported purchasing only 280,000 tonnes of wheat in an international tender, which was significantly below expectations. The shortfall has been attributed to elevated prices and extended payment delays.
Farouk mentioned that GASC is currently in informal discussions with suppliers to secure better pricing. Estimates suggest that GASC is looking to buy up to 1.8 million tonnes of wheat from sources like Russia, with a reported free-on-board price of around $248 per tonne, utilizing 270-day letters of credit for payment.
The minister expressed confidence in obtaining wheat at discounted prices from key suppliers, emphasizing the importance of Egypt’s wheat purchasing strategy and its balanced foreign relations.