Egypt is presently in its most recent round of discussions to buy wheat through direct purchase since the Ukraine crisis disrupted grain markets.
The government has argued that this method can provide more affordable rates.
The General Authority for Supply Commodities (GASC), Egypt’s official grain buyer, met privately with at least three suppliers on Wednesday, according to dealers; however, no purchase has been made.
It was unclear if GASC would eventually make a purchase or if it was just assessing prices, dealers stated.
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.
Following Russia’s invasion of Ukraine in February, which disrupted grain markets and raised doubts about shipments via the Black Sea, Egypt’s government has worked to diversify both the sources of its wheat supplies and its purchasing alternatives.
In an effort to increase its wheat stockpiles, the cabinet approved acquisitions of supplies of wheat from around the world in May through direct proposals from businesses or governments addressed to the state grains buyer GASC.
Among them is an unfulfilled contract to buy wheat from India.
Egypt’s current wheat reserves stand at around seven months, according to the supply ministry.
