Egypt has adopted during the last decade, a policy of preferential purchase of wheat from the Black Sea because of its proximity and competitive prices in relation to its quality. The Russian-Ukrainian crisis is now calling this strategy into question.
In Egypt, the government has just accredited India as a wheat import origin. This was declared on Saturday April 16 by Piyush Goyal, Indian Minister of Trade and Industry. This decision comes following the visit of a delegation from the Egyptian Ministry of Agriculture to the Asian country to study phytosanitary measures.
According to the official, the Egyptian inspectors notably examined various processing units as well as farms in the state of Maharashtra. With this green light, India becomes the 18th largest wheat import origin of the General Authority for Commodity Supply (GASC), the main public buyer of cereals.
This approach should allow Egypt to access sufficient quantities of wheat to satisfy its bread subsidy program (which benefits more than 60 million people) under economically satisfactory conditions at a time when the invasion of the Ukraine by Russia drove up world prices.
Indeed, according to many market sources, a ton of Indian wheat costs about $25-$30 less than other deals with the weak Rupee and robust production supporting the export segment.
According to Piyush Goyal, India could export around 1 million tonnes of wheat to Egypt this year and plans to send a shipment of 240,000 tonnes of the cereal by the end of this month. to the land of the pharaohs.