Egypt drops wheat supplier AOS, approves import of 120,000 T of wheat

19.07.2018

Egypt, one of the world's largest
wheat buyers, has removed a top supplier from its list of
approved sellers after multiple delays in the delivery of wheat
cargoes.

Egypt said in May that Dubai-based AOS had failed to deliver
on two 60,000 tonne cargoes despite being offered extensions,
and it later cancelled one of them.

AOS fulfilled about 20 percent of Egypt's annual wheat
requirements, including providing 700,000 tonnes per year to
state-buyer GASC, the company's chairman said last November.

Egypt's cabinet on Wednesday said it approved the purchase
of 120,000 tonnes of wheat previously awarded by its state grain
buyer GASC to AOS and Egypt's Union, that acts as its agent. The
measure is intended to facilitate payments to the original
suppliers.

A GASC official said the cargoes the cabinet approved on
Wednesday had already arrived in Egypt, but did not name the
original trading firms.

He also told Reuters that AOS and Union, had now been
removed from the list of approved GASC suppliers.

Cairo spends about $1.5 billion annually on wheat imports to
stock a sprawling bread subsidy programme relied on by tens of
millions of Egyptians.

 

agriculture

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