HAMBURG/CAIRO: Russia’s curbs on wheat exports have inadvertently helped Ukraine secure lucrative sales to Egypt this week while also inflating prices for the world’s top importer, traders said.
Egypt’s state grains buyer GASC bought 290,000 metric tons of wheat in an international tender on Monday. The purchase included 120,000 tons from Ukraine as well as 120,000 tons from Romania and 50,000 tons from Bulgaria.
Russia, the world’s top wheat exporter and Egypt’s most important supplier, was kept out of the sale due to unofficial policies to prevent a price spike at home as the country seeks to combat inflation partly fueled by military spending.
The restrictions, mostly not officially announced, include a minimum export price, export taxes and limiting sales of Russian grain by foreign trading houses.
“Had Russian exporters been allowed to offer realistic market prices, which would be much lower, I think they would have pretty much wiped up the Egyptian sale,” one trader said.
“The Russian moves are making Ukrainian supplies look more attractive, especially to importers in a difficult financial state like Egypt,” the trader added.
Russia’s agriculture ministry did not immediately respond to a request for comment on whether government grain export policies had led to the loss of business to Ukraine at this week’s Egyptian tender.
A trader in Ukraine said the Russian restrictions had provided more opportunites although the country had already realized about 60 percent of its potential sales this year.
“The cheapest supplier is leaving, so it’s probably not who wins but who loses,” the trader said, referring to how Russian policies could raise the cost of wheat for importers.
Hesham Soliman, a trader in Egypt, said Russia was holding off waiting for prices to rise and profitability to increase.
“This isn’t just about Russian export restrictions. Russia knows it controls the market and is acting accordingly,” he said, adding Egypt’s state buyer had pushed back by purchasing Black Sea wheat from other sources.
Noamany Nasr, a former adviser to Egypt’s supply ministry, said Russia frequently introduced subtle barriers to curb its own exports, whether to raise prices or for internal reasons.
“Ironically, this benefits Russia’s competitors.”
Egypt’s supply ministry said on Tuesday that after the purchase it now has strategic reserves for five months of consumption although traders expect it will need to secure additional supplies in coming months.
“There’s still supply in Romania where farmers have been holding onto a lot of their crop,” another European trader said.
“In Bulgaria, supply is gradually getting tighter. In Ukraine, there’s not a huge amount left, though they haven’t been shipping as vigorously as the Russians.”

NEW DELHI: The newly elected assembly of Jammu and Kashmir passed on Wednesday a resolution requesting the Indian government to start talks for the restoration of the region’s special status.

Kashmir lost its semi-autonomy in August 2019, when Prime Minister Narendra Modi’s government repealed Article 370 of the Indian constitution and downgraded it from state to union territory.

Article 370 acknowledged the special status of the state of Jammu and Kashmir in terms of autonomy and its ability to formulate laws for its permanent residents.

The region has been under direct control of New Delhi since, with India’s Parliament as its main legislator, but last month the territory elected its local legislative assembly, with voters choosing representatives in opposition to Modi’s Hindu-nationalist Bharatiya Janata Party.

The election was the first in 10 years, with the restoration of statehood being a main promise of all contenders, including the BJP.

The National Conference, the oldest party in Kashmir, won the polls and formed a government led by Omar Abdullah, who had earlier served as the chief minister of the state of Jammu and Kashmir between 2009 and 2014.

Wednesday’s resolution was filed by Abdullah’s deputy, Surinder Kumar Choudhary.

“This assembly upon the Government of India to initiate dialogue with elected representatives of people of Jammu and Kashmir for restoration of special status, constitutional guarantees and to work out constitutional mechanisms for restoring these provisions,” the resolution read.

“This Legislative Assembly reaffirms the importance of the special status and constitutional guarantees, which safeguarded the identity, culture, and rights of the people of Jammu and Kashmir, and expresses concern over their unilateral removal.”

All parties in the 90-member assembly supported the resolution except for 29 BJP lawmakers.

After the revocation of Article 370, a series of administrative changes followed, with the Indian government removing protections on land and jobs for the local population, which many in the Muslim-majority region likened to attempts at demographically altering it.

While the restoration of Kashmir’s statehood was on the table, with the region’s New Delhi-appointed lieutenant governor, Manoj Sinha, bringing it up earlier this week, the assembly’s call to restore the special status and protections came as a surprise.

“It was a surprise, but it was expected. It was not expected that this would happen quickly. The NC in its manifesto was committed to do it,” Prof. Noor Ahmad Baba, political science lecturer from the University of Kashmir, told Arab News.

“That is implied that the with the special status statehood, too, would be restored.”

The wording of the resolution, which did not mention Article 370 of the constitution, allowed room for negotiation with New Delhi.

“They have not asked for the restoration of Article 370, they have asked for the safeguarding of culture, identity and rights of the people,” Baba said.

“On the face of it, it looks difficult for New Delhi to accept the demand for special status. But there is also a window open here. It can be a negotiated kind of relationship, which can be symbolically different from Article 370.”

An agreement could also help to improve India’s relationship with Pakistan, he said, and become a “basis for that.”

Indian-controlled Jammu and Kashmir is part of the larger Kashmiri territory, which has been the subject of international dispute since the 1947 partition of the Indian subcontinent into Hindu-majority India and Muslim-majority Pakistan.

Both countries claim Kashmir in full and rule in part. Indian-controlled Kashmir has, for decades, witnessed outbreaks of separatist insurgencies to resist control from the government in New Delhi.