Egypt cancels third wheat tender as standoff with sellers continues

A man harvesting wheat in EGYPT. /AP

Egypt failed to attract a single offer at its state grain tender, forcing it to cancel its third consecutive wheat purchase tender.

This comes amid an ongoing standoff with suppliers over import policies. The country’s state grain buyer, the GASC, was tapping into global markets after Egypt reinstated a controversial zero-tolerance policy towards the ergot fungus. Egypt depends on a steady stream of massive wheat shipments in order to run its bread subsidy programme, which feeds tens of millions of its citizens. The country may suffer if the zero ergot policy continues to block access to global grains.

Eight shipments, yet to arrive in Egypt, were purchased under the 0.05 percent rule but are now being scrutinised under the stricter zero tolerance regulation.