Egypt Power Struggle Rattles Wheat Market as Tender Scrapped
- World’s top importer fails to buy after U-turn on ergot policy
- Venus was the only company willing to supply wheat in tender
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A power struggle in Egypt is upending global wheat markets as a dispute between government ministries resulted in the nation’s failure Wednesday to buy grain needed to subsidize bread.
Egypt’s state-run buyer couldn’t attract enough offers and thus had to cancel Wednesday’s tender after the Agriculture Ministry said over the weekend it would ban any imports with traces of ergot, naturally occurring fungus that can be dangerous in large amounts, the nation’s Supply Ministry said Wednesday. The statement highlights a dispute between the two government sectors over who controls imports in the world’s largest buyer, where state grain purchases help supply bread to a population of more than 90 million.