Egypt is determined to achieve its target 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.
Farouk stated that Egypt has received the green light to engage in direct negotiations to secure favorable pricing and payment terms, citing the country’s significant role in wheat purchasing. The General Authority for Supply Commodities (GASC), Egypt’s state grain buyer, initiated a tender on August 6, which was described as the largest ever by the world’s leading wheat importer. However, by August 12, GASC had only managed to purchase 280,000 tonnes, falling short of its expectations due to rising prices linked to extended payment delays.
Traders estimate that GASC aims to acquire up to 1.8 million tonnes of wheat, primarily from Russia, at a reported free-on-board price of around $248 per tonne, with payments structured through 270-day letters of credit. Farouk expressed confidence in securing discounted prices from key suppliers, including Russia and the EU, and mentioned the possibility of adding Turkey as a new source of wheat imports.
Currently, Egypt’s wheat reserves are sufficient to cover over six months of demand, with plans to extend this to more than nine months to buffer against potential geopolitical tensions. As of now, the reserves cover 6.3 months for wheat, 6.2 months for vegetable oils, and 13 months for sugar.