Egypt shifts from wheat tenders to direct deals amid Ukraine uncertainty

Egypt shifts from wheat tenders to direct deals amid Ukraine uncertainty

CAIRO - Egypt is in its latest round of talks to buy wheat by direct purchase, traders said, a system the government has said can provide more attractive prices since the Ukraine war disrupted grain markets.

Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), held private talks with at least three suppliers on Wednesday, the traders said.

On Thursday they said Egypt was believed to have bought 120,000 tonnes of Russian wheat via direct talks.

Egypt, one of the world's biggest wheat importers, has not issued international purchasing tenders since it cancelled one in mid-July.

The country has opted instead to buy around 1.5 million tonnes of wheat through private direct talks with global companies.

Egypt's government has sought to diversify both origins for wheat supplies and purchasing options following Russia's invasion of Ukraine in February, which disrupted grain markets and cast uncertainty over exports via the Black Sea.

In May, the cabinet approved purchases of global wheat supplies through direct offers from companies or governments sent to its state grains buyer GASC, in an effort to boost its wheat reserves.

Those include an outstanding agreement to purchase wheat from India.

Egypt's current wheat reserves stand at around seven months, according to the supply ministry.

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