Egypt is scrambling to find alternate sources of wheat after the Russian invasion of Ukraine has put supply to the country in jeopardy. This is especially urgent because the price of bread in Egypt has in the past sparked protests in the country.
Russia and Ukraine are key players in the global grain market, with their wheat exports accounting for 23% of international trade in 2021-22, according to the US Department of Agriculture. Egypt, Lebanon, and Libya are among the MENA region’s top wheat importers from Ukraine.
In 2021, Egypt imported 6.1 million tonnes of wheat; 4.2 million came from Russia, worth $1.2 billion, representing 69.4% of total Egyptian wheat imports. Imports from Ukraine amounted to 651,400 tonnes, worth $649.4 million, accounting for 10.7% of total imports.
Over the last 50 years, the price of bread has been a politically controversial topic in Egypt, triggering various protests. A subsidized flat loaf costs 0.05 Egyptian pounds, less than one US cent. Naguib Sawiris, the Egyptian tycoon, appealed to Egypt’s Minister of Supply on February 22 to acquire and store large quantities of wheat.
Purchases by Egypt’s state buyer, the General Authority for Supply Commodities (GASC), go towards heavily subsidized bread available to more than 60 million Egyptians.
The government says it intends to reform the program as it tries to limit its import bill, but has yet to announce a plan. GASC has canceled two tenders since Russia’s invasion. It canceled the first because of a lack of bids, was “testing the water” to assess prices with the second, and was in no rush to buy, Ibrahim Ashmawy, deputy supply, and internal trade minister told Reuters.
