Egypt purchases first Ukrainian wheat consignment since war started

Egypt's national buyer GASC bought 175 thou. t of Ukrainian wheat in private negotiations with suppliers. These are the first purchases since the start of the russia-Ukraine war, Al-Monitor reports.

"The Ministry expects to import about one million tons of wheat by mid-2023 to grow its strategic wheat reserve and meet the needs of local bakeries and the private sector," the statement reads.

Ibrahim Ashmawy, the Deputy Minister of Internal Trade and Supply, said that Egypt's strategic wheat stock is sufficient for the next five months.

"Egypt is the world's largest wheat importer. Domestic consumption is almost 25 million tons annually, while the country produces about 12 million tons," Ashmawy said, adding that the rest is imported.

Head of the Egyptian Forum for Economic and Strategic Studies Rashad Abdo said that the contracts signed by Egypt for the purchase of Ukrainian wheat are "a good step".

Egypt was able to secure these contracts thanks to the "grain deal" that allowed the resumption of exports from the ports of Big Odesa, he said.

Since the start of 2022/23, grains export from Ukraine dropped by 30% YoY to 18.27 mln t as of December 5.