Russian wheat push for access to Algerian grain tenders

MOSCOW/PARIS: Russian wheat exporters want to register with the Algerian authorities by the end of the year to start a process aimed at securing access to a market now dominated by France, the Russian authorities said on Monday.

Russian wheat has been barred from international tenders in Algeria, one of the world's biggest wheat importers, for failing to meet the North African nation's strict bug damage controls.

Several Russian firms interested in exporting to Algeria planned to register with Algeria's watchdog so they could submit samples for analysis, Yulia Melano, a spokeswoman for Russia agriculture watchdog Rosselkhoznadzor, told Reuters.

Once registered, the firms would then send grain samples to the Algerian authorities for analysis, she said, adding that registration was expected to be completed before the end of 2018 and samples might also be sent by then.

"We hope that our Algerian colleagues will discuss this issue with their watchdog and that it will take a decision," Melano said.

But she said could "not guarantee so far that there will be a decision" to grant approval for Russian suppliers to bid.

Russian and Algerian officials discussed the issue in Moscow last week.

Algeria's state grains agency OAIC did not reply to a Reuters request for comment.

Algeria accounts for a half of French wheat exports. France has exported 1.75 million tonnes of wheat to Algeria since the start of the 2018/2019 season on July 1, according to Refinitiv Eikon data.

To allow imports of Russian wheat, Algeria would need to increase the maximum permitted bug damage to around 0.5 percent from 0.1 percent, several traders said.

Such a decision would reduce Algeria's exposure to French wheat imports from a commercial point of view but would also require modifying specifications that have been in place for several decades.

"It is obvious that there is an important financial interest for Algeria in allowing the import of Russian wheat, which is often more competitive, but the decision is also political and sometimes politics is not economical," one of the traders said.

But the plans to send samples of Russian wheat to Algeria showed that the process towards gaining access was continuing, another trader said. "The question is not whether OAIC will one day modify its criteria for bug damage but when," he added.