CAIRO/DUBAI, Sept 1 (Reuters): Egypt's biggest ever wheat tender, nearly 20 times its usual size, stemmed from food security concerns sparked by an intelligence briefing given to President Abdel Fattah al-Sisi, according to three security and government sources.
Egypt, one of the world's biggest wheat importers, relies on the grain to produce subsidised bread for tens of millions of Egyptians. Successive governments have kept its price stable for decades to avoid public unrest, but in June, Sisi's government hiked the price by 300 per cent.
Sisi's role in the tender launched earlier this month - which sought 3.8 million metric tons of wheat, but delivered just 7 per cent of those volumes - has not been previously reported. His office did not respond to a request for comment.
Egypt has suffered several financial shocks in recent years including from Russia's invasion of Ukraine in 2022 which disrupted supply chains and caused global wheat prices to rise to a peak at more than $500 a metric ton.
Sisi took the decision together with Prime Minister Mostafa Madbouly and newly appointed Supply Minister Sherif Farouk, the sources said. Sisi's personal involvement was highly unusual, as decisions about tenders are usually taken by the supply ministry.
The size of the tender was also unusual. The 3.8 million tons sought by Egypt, worth around $850 million, compares to the more regular size of about 200,000 tons and represents more than half its annual wheat imports.
Sisi took the decision after a regular quarterly briefing from his intelligence services in July that highlighted the risks of escalating tensions in the Middle East and in exporting countries such as Russia and Ukraine, the sources said.
Egypt's Sisi ordered huge wheat purchase fearing new supply crisis
FE Team | Published: September 01, 2024 21:49:18
Egypt's Sisi ordered huge wheat purchase fearing new supply crisis
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