December 22, 2009

Egypt considers long-term wheat imports from Russia

Egypt and Russia will discuss a long-term agreement to import high quality wheat and building of wheat silos.

Egyptian Minister of Trade and Industry Rachid Mohamed Rachid will meet with his Russian counterpart Viktor Khristenko on Wednesday (Dec 23) to discuss the possibility of signing a long-term agreement with Russia to import high quality Russian wheat on concessional terms.

The two parties will also discuss attracting Russian investments in the silos building sector and start official negotiations between Egypt and Russia to establish a free trade agreement between the two countries.

Egypt, the world's largest wheat importer, bought in 50% of its wheat from Russia in the fiscal year 2009-10. French wheat was second at 34%, followed by US wheat at 11%, and then Germany and Canada at 3% and 2% respectively, according to government statistics.

The Egyptian government imported a total of 3.61 million tonnes in the 2009-10 financial year.

In May, Egyptian authorities quarantined a shipment of 52,501 tonnes of Russian wheat imported by Egyptian Traders Co. because it found weed seeds and dead insects in the grain.