Egypt, the world’s biggest wheat importer, may add Romania and Poland to its list of approved providers as it seeks greater competition and lower prices for the grain, reported Bloomberg.
The General Authority for Supply Commodities buys wheat for the government through international tenders because local production is insufficient to meet demand, according to a report by investment bank Beltone Financial.
Price is the sole factor in determining the outcome of the tenders, said the authority’s vice chairman.
At the latest tender on June 19, Egypt agreed to buy 60,000 metric tons of Russian wheat and 60,000 tons of wheat from Kazakhstan at a price of $166 per ton.
Russia had the biggest share of Egypt’s wheat imports so far in 2009/10, accounting for 58.7 percent, followed by France and the USA with 27.2 percent and 7.6 percent, respectively, Beltone reported.
GASC’s total imports of the grain for the marketing year may reach between 5 million and 5.2 million tons. The agency may also purchase between 2.2 million and 3 million tons of local wheat.
