India and Egypt are reportedly in talks to exchange wheat for fertilizer amid the growing food supply crunch.
For the potential deal, India would export wheat to Egypt and would get fertilizers and other products in return, Egyptian Supply Minister Aly El-Moselhy told Bloomberg.
Moselhy said he met with the Indian ambassador to Egypt on Wednesday to go over a potential swap agreement for 500,000 tons of wheat.
Russia’s invasion of Ukraine disrupted global wheat markets as the two countries are top grain producers. Meanwhile, India is the second-largest wheat producer in the world but banned wheat exports in May to bolster its own food security, though it has since eased some restrictions.
Egypt is one of the world’s top wheat importers and faces a particularly dire situation — potential food shortages and social unrest. The country has also explored talks with the United Arab Emirates, European countries, and the US for ways to ease any potential food shortages, according to Bloomberg.
Other commodity markets have been roiled by Russia’s invasion of Ukraine, prompting unusual trade flows.
For example, Indian purchases of Russian oil have soared as Moscow’s traditional customers have shunned its exports. Last month, India was reportedly seeking more than a 35% discount on Russian oil, and the Wall Street Journal reported this week that Russian crude is likely ending up in the US after being refined and mixed in India.