Egypt’s supply minister said tensions between Russia and Ukraine, the two largest wheat exporters, have increased uncertainty in the market, while the government is working on a number of protective measures.
This was reported by the Egyptian state news agency MENA, ProAgro Group reported citing Refinitiv Agriculture.
The government is looking at diversifying the sources of wheat imports to protect its strategic stocks and is considering hedging against rising commodity prices, said Supply Minister Ali Mozeli. He added that Egypt’s strategic wheat stocks are now sufficient for 5.4 months.
A potential Russian invasion of Ukraine could lead to disruptions in grain supplies from the Black Sea region, pushing prices up.
Egypt is one of the world’s largest importers of wheat. According to regional traders, last year the volume of wheat imports to Egypt from Russia was about 50% and about 30% from Ukraine.
