India’s first wheat shipment of 55,000 tonnes to Egypt has passed all government tests for quality and other parameters after dropping anchor at the port of Alexandria, official sources said today (Friday). .
Unloading the cargo, exported by Mera Group into the vessel mana, will start tomorrow (Saturday). The sources, quoting Neal Sahni, CEO and co-founder of Mera Group, said Cairo appreciated the quality of the wheat India had sent.
“Egypt is the most difficult market for selling wheat. It is also the biggest. The pleasant manner in which she accepted the shipment is a slap in the face for Turkey which rejected a shipment of durum wheat two weeks ago,” said Delhi-based exporter Rajesh Paharia Jain.
Shipping wheat to Egypt will likely open barter trade opportunities between the two nations. “In all possibilities, India could import phosphate rock in exchange for the shipment of wheat,” Jain said.
Sale before ban
The wheat sale took place before India banned its exports from May 13. The agreement was signed shortly after an official Egyptian team, including authorities from the Department of Plant Quarantine and Pest Risks, visited various facilities in India and cleared its exports.
A report from Cairo quoted Sahni as saying his company and Indian officials had worked hard to ship quality wheat that met Egyptian standards.
In fact, India’s ban came half way through when the ship was being loaded, but as the Letter of Credit (LC) had already been issued, there was no problem getting the shipments out. .
India has designated 19 more vessels which will carry an additional 2.3 lakh tonnes. Of these, four are currently stuck in Indian ports.
Shortly after India imposed a ban on wheat exports, Egypt said the Narendra Modi government had agreed to supply 5 lakh tonnes this year. The Egyptian General Authority for Commodities (GASC) has added India to its 26 already accredited wheat import origins, including Russia, Ukraine, France, Germany, Kazakhstan and the United States to facilitate shipments.
Decline in production, purchases
GASC is Egypt’s official supply agency and it has sought wheat from India to fill the gap caused by the affected grain supply from the Black Sea region due to the Russian- Ukrainian.
India has banned wheat exports as its production this year was affected by the heatwave that swept the country in March-April. Wheat production this year has been lowered to 106 million tonnes (mt) from initial estimates of a record 111.34 mt.
Other reasons why India banned foodgrain shipments were lower purchases by the Food Corporation of India for buffer stocks as open market prices were above the minimum support price of ₹2,015 per cwt. Prices increased due to export demand due to the war in Ukraine.
However, India, while banning wheat exports, said it would help neighboring and vulnerable countries with food grains.
Meanwhile, the 56,877 tons of durum wheat rejected by Turkey for “fragile reasons” anchored in an Israeli port after Egypt refused to let in the cargo rejected by Turkey.
June 10, 2022