India and Egypt Negotiate Wheat-for-Fertilisers Trade Amid Commodity Shortages

India and Egypt are exploring a potential wheat-for-fertilisers deal, initiated during a meeting between Egyptian President Abdel Fattah El-Sisi and Indian Prime Minister Narendra Modi. This comes as both nations aim to address their respective shortages and ensure food security. The dialogue began when President Sisi highlighted Egypt’s urgent need for wheat, to which PM Modi responded by pointing out India’s demand for fertilisers.

Earlier in April 2022, Egypt acknowledged India as an approved wheat supplier. Following this recognition, Egypt placed an order for 63,500 tonnes of wheat from India. This transaction occurred just before India imposed a ban on wheat exports in May 2022. While India stands as a significant producer of both rice and wheat, it has a pressing requirement for economically-priced fertilisers. Egypt, on the other hand, is the world’s fifth-largest fertiliser exporter, with sales surpassing $2.7 billion in 2022.

Historically, Egypt depended largely on Russia and Ukraine for its wheat imports. However, the ongoing conflict has disrupted this supply chain, necessitating the search for alternative suppliers. India’s willingness to support nations during times of crisis, as witnessed during the pandemic when it provided food and Covid-19 vaccines, aligns with this new trading possibility.

Furthermore, in its efforts to foster stronger trade relationships with African nations, India recognises the potential for mutual gains in sectors like fertilisers and fuel. With growing trade and investment between India and Egypt in recent years, several Indian businesses have amplified their investments in Egypt, viewing the nation as a strategic entry point to the Arab, African, and European markets.