Russia seeks talks on wheat aid for Egypt
Moscow, July 15, 2013
Russia and other countries should hold discussions on possible humanitarian deliveries of wheat to Egypt, the world's largest importer of the grain, as it faces an acute shortage, Russia's deputy agriculture minister said.
Egypt has less than two months' supply of imported wheat left in its stocks, ousted President Mohamed Mursi's minister of supplies said last week.
"We need to discuss questions related to humanitarian aid deliveries to Egypt with the world community ... There have been no requests (from Egypt) yet," Deputy Agriculture Minister Ilya Shestakov told a news briefing in Moscow on Monday.
Shestakov's remark appeared to be a reversal of policy since Russia rejected a request from Mursi in April for help securing supplies of vital commodities on concessionary terms when the former president of Egypt visited Moscow.
"If it's for free or long-term financing, definitely Egypt will accept it," a Cairo-based trader said. "Right now economically, with the money from the Gulf, Egypt is in a better position compared with two weeks ago," the trader added.
As of last week, Egypt, which usually imports about 10 million tonnes a year, with Russia as a major supplier, had just 500,000 tonnes of imported wheat left. The government's total stocks including wheat from the domestic crop amounted to about 3.5 million tonnes.
Earlier this month in addition, it bought 180,000 tonnes from Romania and Ukraine on the international market on commercial terms for delivery in early August.
Grain traders expect Egypt's state grain buyer, the General Authority for Supply Commodities (GASC) to issue a new tender to purchase wheat soon, although GASC's vice chairman said last week that high prices and availability of stocks made that unlikely.
The idea that Russia could send wheat as humanitarian aid came as a surprise because of Russia's status as a big commercial supplier to Egypt and the fact that its own wheat stocks are low.
"It wouldn't make much sense really, because the wheat trade is in the hands of the private sector rather than the government, unless they have some old crop wheat that they would like to give as aid when they are cleaning up their silos," a second Cairo-based trader said.
The Russian government, meanwhile, plans to start buying grain on the domestic market to replenish state stocks after the end of harvesting campaign in late September or October, Shestakov said.
Officials said previously that the government might buy 6 million tonnes of grain for its stocks this year.
Taking into account state restocking campaign and low carryover stocks, Russia's supply and demand balance of grain will be tight this 2013/14 marketing year, which started on July 1, Shestakov said.
He kept the ministry's 2013 grain crop forecast unchanged at 95 million tonnes and said that from this amount 71 million tonnes would be used to cover domestic demand. He pegged the 2013/14 exportable grain surplus at 20 million tonnes. -Reuters
More Miscellaneous Stories
- Dubai chamber F&B group sets roadmap for 2014
- Feminisation drive costs $213m to Saudi firms
- US interiors firm opens MEA base in Dubai
- Saudi 'spends $1.6bn on energy drinks'
- Farmer is jailed for raping housemaid in Bahrain
- Bahraini mother recounts firebombs agony
- Guard foils masked ATM robbers in Bahrain
- Bahraini on Arab world's 'most powerful women' list
- Latest kitchen technology at Sharjah event
- Number of HNWIs in Africa to double by 2023
- World boxing legend to visit Bahrain
- UAE road accidents decline by 23.5pc
- Top businesswomen in Bahrain honoured
- Death penalty sought for Bahrain terrorists
- Girl, 9, dies after fall from 8th floor in Abu Dhabi
- Lebanese café brand opens Dubai outlet
- Bahrain poultry firm told to step up safety
- Customer dies in Bahrain cafe brawl
- Bahraini boys hurt while planting bombs
- Philips, Ericsson launch LED street lighting
- DuBiotech to set up first Halal safety lab
- Jotun to supply coatings for Makkah Station
- Raytheon wins $655m Kuwait Patriot deal
- Alwaleed Foundation lights up 3 Saudi villages
- Poultry farms strike may trigger shortages in Bahrain
- Oman seals Victoria food security pact
- Saudi woman, 80, donates $133m to charity
- New Saudi clamp on energy drinks
- Outrage follows Bahrain killer bomb
- Improvised explosive device used in Bahrain attack