ADDIS ABABA – Ethiopia’s Public Procurement & Property Administration Agency bought an estimated 600,000 tons of wheat to be sourced from optional origins in two international tenders which closed in late April, according to reports.
The purchases involved 400,000 tons of wheat in a tender which closed on April 29 and 200,000 tonnes which closed on April 30.
The 400,000 tone purchase was believed to have been made from the trading companies Martina Mertens and Olam International, European traders were quoted as saying by Reuters.
Detailed prices paid were not available.
But the report says Mertens had offered Russian wheat in the tender at the lowest price of $215.64 a tonne FOB or $258.15 a tonne c&f including 180 days credit financing for delayed payment and shipment costs.
The 200,000 tone purchase made from trading house Gemcorp, according to Reuters news agency. Final prices were also unavailable.
Shipment for the entire 600,000 tonnes of wheat is two months after the opening of a letter of credit for the purchase.
Ethiopia is still struggling with the impact of drought which has devastated farms in some regions while crops in the country and elsewhere in East Africa are also suffering from swarms of locusts.