India and Egypt are discussing a wheat-for-fertilisers deal to cope with shortages of the two commodities even as they take forward steps to ramp up bilateral trade, people familiar with the matter said.
The two countries elevated their relationship to a strategic partnership during Prime Minister Narendra Modi’s visit to Egypt in June and set a target of boosting two-way trade to $12 billion by 2027. Renewable energy, especially green hydrogen, has emerged as a focus area of cooperation.
The discussions on a wheat-for-fertilisers deal began when Egyptian President Abdel Fattah El-Sisi raised his country’s need for the grain during a meeting with Modi, one of the people cited above said. In turn, Modi raised India’s requirement for fertilisers, the person said.
“The deal is now being discussed as it will ensure food security for both countries,” the person added.
Egypt approved India as a certified wheat supplier in April 2022 and the first order from the Egyptian side for 63,500 tonnes of wheat was placed just before the Indian government banned wheat exports in May 2022.