Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), has finalized one of its largest direct wheat supply agreements, ensuring monthly shipments from November to April. According to sources, the deal involves supplying around 510,000 metric tons of wheat each month, totaling up to 3.12 million tons, primarily sourced from Black Sea origins.
As one of the world’s leading wheat importers, Egypt relies heavily on these purchases to produce heavily subsidized bread, a politically sensitive staple for millions of citizens. Traditionally, GASC procures wheat through transparent international tenders, which significantly influence the global grains market. However, in recent years, the agency has shifted towards private deals to secure more competitive pricing, with this latest agreement marking a notable expansion of that strategy.
The supply will be managed by a joint venture between an Egyptian entity and a major global supplier, although specific company names have not been disclosed due to the sensitivity of the arrangement. Earlier, the joint venture had committed to supplying GASC with 430,000 metric tons for October.
Pricing for the wheat will be determined monthly based on prevailing market rates. Despite the agreement, some traders have expressed skepticism about its fulfillment, contingent on the successful delivery of the October shipment.
This move follows GASC’s efforts to secure a similar quantity through its largest tender in August, initiated by President Abdel Fattah al-Sisi in response to food security concerns exacerbated by recent global disruptions, including the fallout from Russia’s invasion of Ukraine.
Egypt has faced multiple economic challenges, including a severe foreign currency shortage, rising debt, record-high inflation, and ongoing power outages, all contributing to growing public discontent.