(VAN) An Egyptian military agency is now in charge of the country’s import of commodities, replacing the state’s General Authority for Supply Commodities (GASC), Reuters reported, citing a letter it had seen.
Egypt is among the world’s largest wheat importers and subsidized bread is a staple for 70 million of its people.
The Mostakbal Misr Agency for Sustainable Development of the Egyptian Air Forces has become the exclusive body responsible for importing food commodities, according to a letter from the Ministry of Supply to Oksana Lut, Russia’s Minister of Agriculture.
The letter, which was seen by Reuters, said the new agency had plans to employ direct purchase agreements alongside international tenders. The GASC, part of the Ministry of Supply, had been in charge of imports for decades using a tender-based system.
Egypt is among the world’s largest wheat importers and subsidized bread is a staple for 70 million of its people.
In the letter, the Supply Ministry said it guarantees that the new agency has the “financial capacity to honor all commitments arising from tenders and direct purchases.”
Mostakbal Misr was founded in 2022 by presidential decree and serves as the development arm of the Egyptian Armed Forces. It has been taking over some projects from other military organizations as well as civilian bodies, Reuters said.
It first attempted to procure wheat and vegetable oil through direct purchase agreements in November, but procedural ambiguities led to confusion among traders, the news agency said. The deal was postponed.
Egypt’s 2024-25 wheat imports are estimated at 11.2 million tonnes, a 2% increase from last year, according to a report from the Foreign Agricultural Service of the US Department of Agriculture.
Egypt continues to be a top wheat importer due to limited domestic production and its subsidy program to provide low-cost bread.
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