Russia, one of Egypt's major wheat suppliers, has capped its wheat exports and introduced a tax on them in attempt to stabilize domestic food prices in the country.
Russian Prime Minister Mikhail Mishustin ratified the new orders following criticism from President Vladimir Putin over the impact of rising inflation on prices.
Per the orders, Russia will limit its export quota for wheat, rye, barley and corn to 17.5 million tons for the period from February 15 to June 30, 2021, and introduce a wheat export tax of €25 ($30.39) per ton.
Export taxes on wheat would be raised further if export volume exceeds the stated quota.
Russian wheat exports are expected to contract on the back of the move.
In August, Egypt made a record purchase of wheat from Russia by booking 530,000 tons, its highest from Russia since the 2012/2013 season.
In related news, Egypt's General Authority for Supply Commodities (GASC) yesterday announced its purchase of 120,000 tons of Romanian wheat and 115,000 tons of Ukrainian wheat in an international bid. Both shipments are expected between February 1-15 next year.
The purchase came to boost Egypt's reserves of strategic commodities, according to GASC.
Egypt plans to increase its domestic production of wheat by improving its growing techniques, and is eyeing the production of over 10 million tons in the current season.