Egypt's Monumental Wheat Tender Amid Economic Crisis

Egypt issued its largest-ever wheat tender, nearly 20 times its usual size, due to food security concerns informed by an intelligence briefing to President Sisi. Despite the intention to capitalize on low global prices, the tender aimed at 3.8 million tons only secured 7% of the target. Egypt's financial instability and the geopolitical situation primarily drove the decision.

Egypt issued its largest-ever wheat tender, significantly larger than usual, due to food security concerns stemming from an intelligence briefing presented to President Abdel Fattah al-Sisi, according to three security and government sources.

As one of the world's leading wheat importers, Egypt depends on the grain to produce subsidized bread for millions. The Sisi administration increased bread prices by 300% in June, a move aimed to stabilize the heavily-subsidized sector post several financial shocks, including Ukraine's 2022 invasion by Russia.

The tender, aiming for 3.8 million metric tons but fulfilling only 7% of the target, starkly contrasts with the more typical tender size of approximately 200,000 tons. This ambitious attempt was triggered by low global wheat prices. Prime Minister Madbouly asserted that strategic reserves are now sufficient for six months of consumption, with room for further market engagement when prices dip.

(With inputs from agencies.)