Egypt, which is a major importer of food, has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, a fact that has become increasingly clear in the nation’s latest tender.
The country is attempting to boost its efforts to ensure it has enough to feed its citizens, as food stockpiles shrink in an economy where many of its residents rely on a bread-subsidy programme, Bloomberg reported.
On Wednesday, Egypt drew offers from six companies, about half the normal number. Most offered French wheat, but there was also one for Russian grain and rare offers for German and Bulgarian supplies.
But they were all at a high price, Bloomberg added.
Most offers approached close to $500 a tonne, when factoring in shipping. Even the $460 price of Russian wheat – by far the cheapest – was well above the $338.55 rate that Egypt paid just before the war erupted, which in itself was near a multi-year high.
The country was forced to cancel its last two tenders as the war shut Ukraine’s ports and spooked traders from offering Russian cargoes.
Many nations in the Middle East and North Africa greatly depend on Black Sea grain, leaving their food supplies particularly vulnerable from the war.
Soaring food costs have put people’s resilience there at a “breaking point,” according to the United Nations’ World Food Programme, even as the Middle East marks Ramadan.
Results of Egypt’s purchases are still awaited. Local inventories have been falling, although its own harvest is now underway and could shore up supply.
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