The Egyptian authorities have confirmed that Mostakbal Misr will handle public procurement of grain instead of GASC

Egypt's Ministry of Supply has confirmed Mostakbal Misr's authority to import key types of food, Reuters reports with reference to a letter sent to the Ministry of Agriculture of the Russian Federation.

“The Mostakbal Misr Agency will receive all the legal powers previously held by the GASC. The procurement structure will also change - and direct agreements with suppliers will be concluded along with tenders. The Ministry of Supply guarantees that Mostakbal Misr has the financial capacity to meet all tender and direct procurement obligations," the letter said.

At the end of November, Mostakbal Misr announced a tender for the purchase of wheat and vegetable oils, but it did not take place. The Union of Grain Exporters of the Russian Federation then stated that Russian exporters would not participate in the auction without "an official state notification on the authority of the new agency."

Egypt is one of the world's largest importers of wheat. For many years, state purchases of grain were carried out by the GASC agency. While the Mostakbal Misr agency, founded in 2022 by order of the President of Egypt, previously engaged in land reclamation projects. The new procurement strategy could lead to a change in market dynamics, so traders are closely watching for updates on Egypt's wheat import policies and procedures.

According to the Central Agency for Public Mobilization and Statistics of Egypt (CAPMAS), during January-August of this year, compared to the same period in 2023, the country increased wheat imports from $2.467 billion to $3.119 billion, but reduced corn imports from $1.708 billion to $1.444 billion. $. In general, the import of raw materials for the specified period increased by $475 million to $7.513 billion.