What do rising wheat prices, India’s export ban mean for Egypt?

Wheat costs rose considerably as we speak following India limiting wheat exports — a transfer that might have an effect on Egypt specifically. 

Chicago wheat futures rose round 5% as we speak to $12.40 per bushel, which is the best worth since 2008. The index is taken into account a benchmark for wheat costs worldwide. A bushel corresponds to roughly 35 liters. 

The worth improve adopted India banning wheat exports over the weekend, citing the chance of meals shortages. India was solely chargeable for about 0.5% of wheat exports in 2020. Nonetheless, India is likely one of the greatest wheat producers on the earth, and has thought-about exporting extra wheat amid the Russian struggle on Ukraine. Each Ukraine and Russia are prime wheat exporters, and the struggle has disrupted world wheat markets. 

Why it issues: Egypt is the largest wheat importer on the earth, and acquired round 80% of its wheat from Ukraine and Russia earlier than the struggle. 

Egypt has ramped up home manufacturing and turned to India for wheat imports amid the struggle. Yesterday, the Egyptian authorities introduced that they agreed to purchase half 1,000,000 tons of wheat from India. 

It seems that the export ban is not going to have an effect on wheat exports to Egypt at current. Indian officers reportedly stated that present contracts could be met. 

What’s subsequent: It’s unclear when precisely Indian wheat will attain Egypt. The state-owned information outlet Al-Ahram reported Might 14 that the shipments would arrive “quickly.”