African state bars largest EU supplier from wheat tender – Reuters --[Reported by Umva mag]

Algeria reportedly allocated the largest portion of its grain import deal to Russia, which has dominated the region’s markets in recent years

Algeria has barred French companies from competing for a wheat import contract and ordered participating firms not to supply grain produced in the country, Reuters has reported, citing trading sources. The North African nation is currently engaged in a diplomatic standoff with France.

France had been the largest supplier to Algeria, one of the world’s biggest wheat buyers, which had historically relied on imports from the European Union (EU). However, the former French colony has, in recent years, turned to Russian supplies, which currently dominate the North African region’s market, according to a United States Department of Agriculture (USDA) report published in April.

Last month, Russia’s Center for Grain Quality Assurance ranked Algeria second behind Egypt among the top five African importers of Russian wheat by volume between January and September of this year. It received 1.3 million tons of the grain from Russia.

On Tuesday, the state-owned Algerian Inter-professional Office of Cereals (OAIC) reportedly tendered a purchase contract for over 500,000 tons of wheat and turned to Russia as its main supplier.

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“If the current trend continues, Russian grain supplies to Algeria could reach 3 million tons by the end of the season,” TRT Afrika news agency quoted the Russian trade mission in Algeria as saying in a statement on Wednesday.

OAIC conducts regular bids to purchase grain from a list of approved sources, including France, for sale and distribution in Algeria. However, six sources who spoke to Reuters claimed that French firms were not invited to participate in this week’s shortlisting process. Eligible companies were warned not to propose French wheat as a supply option, they said.

The agency announced on Thursday, in response to the alleged exclusion of France, that it had conducted a restricted tender that adhered to technical and industrial standards. It also stated that all shortlisted suppliers are considered strategic partners, “regardless of the origin of the product.”

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“We also inform our usual European partners that, depending on the needs of the national market, consultations will be launched regularly. Partner suppliers meeting the technical and commercial requirements will be invited to participate,” OAIC stated.

According to Reuters sources, the reported restrictions on French supplies reflect a deterioration in diplomatic relations between Algiers and Paris, including over the disputed Western Sahara region.

In July, France angered Algeria by endorsing a Moroccan autonomy plan for the former Spanish territory, which the kingdom has considered part of its own land since 1975. Algiers, which supports the sparsely populated region’s independence, has recalled its ambassador from Paris, with President Abdelmadjid Tebboune canceling a planned visit to France amid the feud.

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