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Egypt is changing its grain procurement scheme, with GASC giving way to Mostakbal Misr as the main state agency.
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Wheat

Egypt is changing its grain procurement scheme, with GASC giving way to Mostakbal Misr as the main state agency.

The Association of Grain Exporters and Producers learned about changes in wheat and other agricultural products purchases for Egypt. Mostakbal Misr agency became the main procurement agency, replacing GASC. Russian exporters are ready to share their experience with the new agency.

The volume of wheat exports to Egypt has significantly increased.

9 February 2025 9 February 2025

The Association of Grain Exporters and Producers received official notification of Egypt's changing procurement scheme for wheat and other agricultural products, reports Interfax agency.

According to the association's chairman Edward Zernin, the Ministry of Supply and Internal Trade of Egypt informed the Minister of Agriculture Oksana Lut that the Mostakbal Misr agency for sustainable development has become the sole state agency with exclusive powers to organize international tenders and direct purchases of wheat and other foodstuffs for Egypt.

The letter states that Mostakbal Misr now performs all the functions previously carried out by Egypt's Food Procurement Agency (GASC) and allows the participation of all grain and foodstuff suppliers accredited by GASC in the tenders or direct purchases conducted. The Ministry of Supply and Internal Trade of Egypt also confirmed the authorities of the officials of Mostakbal Misr to conclude transactions within the tenders or direct purchases and ensured the financial capability to fulfill all obligations to the companies that won the tender or participated in direct purchases and fulfilled their supply obligations honestly.

Zernin stated, "It can now be said that the era of GASC, recently the largest wheat importer and major player in the global grain market, has come to an end. We hope that Mostakbal Misr will not only take into account the accumulated experience of GASC but also improve, taking into account modern opportunities and technologies."

"Russian grain exporters are ready to share their experience and best practices with the new state procurement agency," he emphasized.

Earlier, the association stated that exporters were awaiting official clarification on the powers of the new organization and had adopted a wait-and-see position.

According to the association, wheat exports to Egypt since the beginning of the 2024/25 season have exceeded 4.7 million tons thanks to deliveries to the private sector. A year ago, the volume was just under 2.8 million tons. This season, Egypt leads in the volume of purchasing Russian wheat, surpassing other importers.

According to Igor Pavensky, head of agricultural market analysis at "Rusagrotrans", in recent seasons Egypt has purchased between 11 million to 12 million tons of wheat on the global market, including from Russia 8 million to 8.7 million tons. GASC acquired about 5.7-6.2 million tons, with Russia's share in these tenders being 65-70%.

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