GASC sets ba­sic com­modi­ties ten­ders’ de­liv­ery in Jan­uary

THERE WILL BE NO CHANGE IN BREAD SUB­SIDY SYS­TEM NO MAT­TER HOW MUCH COST COUN­TRY HAS TO BEAR, SAYS MOEIT

The Daily News Egypt - - News - By Ahmed Lam­loum

Egypt’s state grains’ buyer, the Gen­eral Au­thor­ity for Sup­ply Com­modi­ties (GASC), an­nounced the win­ning bid of Egypt’s first in­ter­na­tional rice buy­ing ten­der on Tues­day, while it seeks to launch two veg­etable oils and wheat in­ter­na­tional pur­chas­ing ten­ders for de­liv­ery in Jan­uary.

The rice ten­der will be ap­proved by the Min­is­ter of Sup­ply,Ali Moselhy, af­ter test­ing rice sam­ples that were submitted by the bid­ders, a source in the min­istry told Daily News Egypt.The fi­nan­cial of­fers of this ten­der were be­tween $419.7 and $444 per tonne.

GASC’s ten­der was tar­get­ing short or medium grain milled white rice of any ori­gin, and asked traders to sub­mit 2 kg sam­ples of their pro­duc­tion for test­ing be­fore ap­prov­ing the bids.All In­dian rice sam­ples failed the cook­ing test, while five Chi­nese rice sam­ples as well as a Viet­namese rice sam­ple were ac­cepted.

A to­tal of 11 sup­pli­ers have submitted sam­ples and of­fers to GASC for test­ing since the ten­der was an­nounced on 18 Oc­to­ber.The ten­der re­quired rice car­goes of at least 25,000 tonnes, + or - 5%, for de­liv­ery from Jan­uary to March.

The sam­ples were tested by a re­search cen­tre af­fil­i­ated to the agri­cul­ture min­istry. Egypt, the most pop­u­lous coun­try in theArab world, will need about 500,000 tonnes of im­ported rice this sea­son as it has re­duced lo­cal pro­duc­tion to save wa­ter. MagdyElWelely,aboard­mem­ber of the grains pro­duc­tion divi­sion at the Fed­er­a­tion of Egyp­tian In­dus­tries (FEI), told DNE that lo­cal sup­pli­ers are wait­ing for the agri­cul­ture min­istry’s ap­proval to sup­ply the rice car­goes start­ing from next Jan­uary at EGP 8,750 per tonne, in­stead of EGP 7,500, adding that the traders are ready to sup­ply 28,000 tonnes in Jan­uary and Fe­bru­ary.

GASC is also look­ing to pur­chase at least 30,000 tonnes of soy­bean oil and 10,000 tonnes of sun­flower oil.The agency will also ac­cept EGP-denom­i­nated of­fers for at least 10,000 tonnes of soy­bean oil and 5,000 tonnes of sun­flower oil for de­liv­ery on 10-25 Jan­uary. The dead­line for the of­fers to be submitted is on Wed­nes­day.

This is the sixth ten­der for soy­bean oil and sun­flower oil this year. The GASC’s last ten­der was on 21 Oc­to­ber, and the low­est of­fer pre­sented for soy­bean oil to sup­ply 25,000 tonnes was at $681.20 per tonne, while the low­est of­fer for sun­flower oil was $707 per tonne.

GASC has also pur­chased 240,000 tonnes of wheat in an in­ter­na­tional ten­der last Thurs­day for de­liv­ery be­tween 10-20 Jan­uary, ac­cord­ing to Reuters.The low­est of­fer was by US-based Cargill, at $221 per tonne.

Egypt is the world’s big­gest wheat im­porter as it con­sumes 100bn of bread loaves an­nu­ally. The Egyp­tian peo­ple spend EGP 5bn while the gov­ern­ment pays EGP 60bn in sub­si­dies for the bak­ery own­ers, ac­cord­ing to Fi­nance Min­is­ter Mo­hamed Moeit.

In an in­ter­view with­Ahram news­pa­per on Satur­day, Moeit said there will be no change in “the bread sub­sidy sys­tem no mat­ter how much cost the coun­try has to bear”.

GASC’s ten­der was tar­get­ing short or medium grain milled white rice of any ori­gin

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