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ALGERIA EXCLUDES FRANCE FROM WHEAT TENDER AMID ESCALATING TENSIONS

ALGERIA EXCLUDES FRANCE FROM WHEAT TENDER AMID ESCALATING TENSIONS
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Faith Nyasuguta

Algeria has recently excluded French companies from its wheat import tender, a move that highlights the escalating diplomatic tensions between Algiers and Paris. This decision marks a significant shift in Algeria’s wheat procurement strategy, as the country has long relied on France as its primary supplier. 

The exclusion of French firms from the tender is seen as a direct response to France’s support for a plan placing Western Sahara under Moroccan sovereignty, a stance that has deeply angered Algeria, which backs the Polisario Front’s push for an independent state in the region.

The Algerian Interprofessional Office of Cereals (OAIC), which oversees the country’s grain imports, held its regular tender on Tuesday. Traders estimate that over 500,000 metric tons of grain were purchased during this tender. Typically, OAIC’s tenders are conducted on an optional-origin basis, allowing sellers to choose from a range of approved wheat sources, including French wheat. 

However, this time, French firms were notably absent from the invitation list, and non-French companies were instructed not to propose French wheat as an option.

/News az/

This exclusion is reminiscent of a similar dispute three years ago when France was sidelined from Algeria’s wheat tenders for several months. During that period, Algeria’s wheat market saw a significant shift towards Russian suppliers, a trend that appears to be continuing with the current tender. The recent decision by OAIC is widely believed to reflect the deteriorating diplomatic ties between Algiers and Paris, particularly over the Western Sahara issue.

French wheat was already facing challenges in securing business in Algeria due to a poor harvest and higher prices compared to Russian wheat, which is now Algeria’s main supplier. This year’s French wheat harvest has been the smallest since the 1980s, with repeated heavy rains leading to a significant drop in volume and mixed milling quality. These factors have further diminished the competitiveness of French wheat in the international market.

The exclusion of French wheat from Algeria’s tender raises concerns about the future of French wheat exports to Algeria. While OAIC has not provided a formal explanation for its decision, the move signals a broader exclusion that prevents French firms from offering other wheat origins. This development has created uncertainty over how long the ban on French wheat might continue and what impact it will have on the broader wheat market dynamics.

Algeria’s decision to bar French companies from its wheat tender is a clear indication of the strained relations between the two countries. The diplomatic rift has significant economic implications, particularly for France, which has long been a dominant player in Algeria’s wheat market. As Algeria continues to diversify its wheat suppliers, the shift towards Russian and Black Sea wheat is likely to become more pronounced, further reducing France’s influence in the region.

/Courtesy/

Algeria’s exclusion of French wheat from its latest tender highlights the deepening diplomatic tensions between Algiers and Paris. The move not only reflects Algeria’s dissatisfaction with France’s stance on Western Sahara but also signals a broader shift in Algeria’s wheat procurement strategy. As the situation continues to evolve, the long-term implications for both countries’ wheat markets remain to be seen.

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Faith Nyasuguta

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