Indian wheat could provide a cheaper option for Egypt, largest importer of wheat, But he will have to bypass the quality controls, Developed by the Egyptian Ministry of Agriculture, In addition to higher shipping costs. The Egyptian Ministry of Agriculture announced last week, They agreed to India as a source for importing wheat, But it set several conditions. Like: Inspection for pests prior to export and use of a specific insecticide only, This is according to a document from the ministry seen by “Reuters”. Ahmed Al Attar said, Head of the Egyptian Agricultural Quarantine Department, Approval of the origin does not mean acceptance of anything. There are technical conditions set by management.
Quality concerns related to smut disease as well as excessive use of pesticides have previously hurt Indian wheat exports, Some suppliers received complaints a few years ago. But traders and government officials in India said: They did not receive any complaints when exporting large quantities this year to countries such as Bangladesh, South Korea, Sri Lanka, Oman, Qatar and others.
Traders also explained that shipping costs would pose a challenge to Indian suppliers. Adding that the lowest shipping cost yesterday was $70 per ton.
Rajesh Bhariya Jain said, He is a big trader based in New Delhi, “The cost of shipping Indian wheat to Egypt will be about $70 per ton, compared to $30-40 per ton for supplies from the Black Sea region.”
India’s wheat exports reached 7.85 million tons in the fiscal year ending in March, Its highest level ever and represents a sharp increase from 2.1 million tons in the previous year.
The two countries welcomed the news of adding India as a source approved by Egypt for import. At a time when India is trying to make money from overproduction, Egypt is looking for lower prices after the Russian war hampered its purchases. Which represented about 80 percent of it from Russia and Ukraine last year.
The latest export deals were signed from India at between $330 and $335 per ton on a FOB basis. And it’s more than $100 cheaper than the European offerings, purchased by the General Authority for Supply Commodities, The government grain buyer in Egypt, In her most recent tender.
The authority has canceled two tenders since the Russian intervention in Ukraine before the latest purchase last week. The authority has not yet issued a tender since approval. It is not clear whether it will add India as an origin in the next bidding book