Agreements signed by Egypt to purchase Indian wheat are likely to be exempted from India’s recently-announced restrictions on wheat exports.
Cairo is the world’s largest importer of wheat but it is facing challenges in securing the foodgrain since the onset of the war between Russia and Ukraine.
Egypt had approved the import of Indian wheat, only for India to ban wheat exports on Saturday as a scorching heat wave curtailed the domestic production and drove up the domestic prices.
“For India, we are talking with them on the basis of a government agreement. The ban exempts governments including the government of Egypt,” Egyptian Supply Minister Ali Moselhy’s clarification was quoted in a report by Reuters.
India had said that it might still allow exports backed by letters of credit that have already been issued.
Moreover, New Delhi will also authorise sales to countries that have requested for supplies in order to fulfil their food security needs.
Egypt has signed an agreement to purchase half a million tonnes of wheat from India.
Cairo usually purchases wheat through international tenders rolled out by the state-run General Authority for Supplies Commodity (GASC).
However, Moselhy revealed that the Egyptian cabinet had given the green light for direct purchases for countries or companies this time around.
In addition to India, Cairo was also in negotiations with France, Kazakhstan and Australia for such deals.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.