A U.S. company has won a tender to supply 55,000 metric tons of wheat to Egypt, which faces grain shortages after its main supplier, Russia, banned grain exports amid severe draught, the Masrawy news portal said on Thursday.
The company is expected to deliver the wheat from September 16-30, at a price of $277.5 per metric ton.
U.S. and EU companies earlier won a contract to supply around 500,000 metric tons of wheat to Egypt, one of the world's largest grain importers.
Many in Egypt, which had seen mass protests over rising food prices in the past, are worried about a possible grain deficit and hikes in food prices.
The country's agriculture ministry said the country had harvested 2.5 million metric tons of wheat this year and had strategic stockpiles that would last five months.
The government said this year's grain supply problems would not force the country to lower its high quality standards on grain imports or to lower sanitary controls.
Russia, which normally meets almost 50% of Egypt's grain needs, imposed a ban on the export of grain, including wheat, barley, rye and maize, from August 15 until at least the end of the year. The move comes as a result of drought and wildfires that have destroyed 10.8 million hectares of crops.
As Russian grain exports are relatively cheap, Egypt faces a loss of up to $700 million if it is to depend on imports from the United States and western Europe.
CAIRO, August 19 (RIA Novosti)
