Egypt and Russia secure formal wheat supply agreement until April 2025

EGYPT – Egypt and Russia have formalized a substantial wheat supply agreement, extending their partnership until April 2025.

This deal, announced after intensive discussions between officials from both nations, is a strategic step aimed at fortifying Egypt’s food security.

The agreement arrives as rising food prices, geopolitical tensions, and supply chain disruptions continue to put immense pressure on global food security.

Egypt, the world’s largest wheat importer, relies heavily on stable and affordable wheat imports to meet domestic demand. Wheat forms the cornerstone of the Egyptian diet, used extensively in the production of bread and other staple foods.

Under the agreement, Russia will supply Egypt with millions of tons of wheat over the next two years, reinforcing Egypt’s strategic wheat reserves and supporting its efforts to boost domestic production.

The agreement comes after Egypt’s General Authority for Supply Commodities (GASC), recently secured a historic contract for 3.12 million tonnes of wheat, which will be delivered at a rate of 510,000 tonnes per month from the Black Sea region between November and April.

As the world’s largest wheat importer, the purchase marked GASC’s largest direct purchase since it began this practice in 2022.

Russia and Ukraine together account for a significant percentage of the world’s wheat exports, and the conflict has introduced severe volatility in the market. By securing this deal with Russia, Egypt not only solidifies its wheat supply chain but also protects itself against potential future shortages.

Egyptian consumers have felt the effects of rising food prices and inflation, making this agreement a critical step toward stabilizing wheat prices within the country.

Bread, a dietary staple, has become increasingly expensive, putting pressure on household budgets.

According to the Food and Agriculture Organization (FAO), Egypt’s wheat imports are projected to rise by 1.6% to 12.2 million tonnes in the upcoming season.

This follows a significant increase in spending on wheat, which surged by 30% to approximately US$2.3 billion in the first half of 2024-25. The majority of this wheat is consumed under a government subsidy program, costing nearly US$3 billion annually.

With this agreement, the Egyptian government expects to stabilize the market, offering relief to consumers and protecting them from further price hikes.

While Egypt has worked to boost local wheat production, its dependency on imports still remains high.

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