How tensions in Ukraine could rile Egypt

THE BIGGEST buyer of wheat in the world is Egypt, which will import over 13m tonnes of the grain this year. Odd, then, that the way it makes these purchases is so archaic. Every few weeks it summons traders to a ramshackle building in Cairo. Agents from the big firms that source, store and ship foodstuffs are told to bring an envelope with their best price inside. These are then opened and the prices revealed to all. That’s when the haggling begins. The tenders drag on for hours, but eventually Egypt announces a purchase so big that global wheat prices move in response.Egypt’s stability depends on these imports. The government uses the wheat to make subsidised bread, on which many families rely. When Anwar Sadat, a former president, lifted the subsidy in 1977 there were riots and he quickly backtracked. When Egyptians revolted in 2011, their three main demands were “bread, freedom and social justice”. The latter two proved elusive, but the provision of cheap loaves continues. A small one sells for 0.05 Egyptian pounds, or a third of a penny, a fraction of what it costs to make.