CAIRO: Egypt, the world's largest wheat buyer, has received seven offers in an international purchase tender on Tuesday, traders said, after initially drawing zero bids from suppliers agitated by what they said are growing demurrage fees.
Traders said earlier that they were hesitant to present offers amid ongoing disagreements over demurrage payments, fees charged to suppliers for vessels sitting at ports past the contracted period.
Suppliers say their outstanding demurrage fees have increased in recent months owing to Egypt's lengthy and erratic inspection procedures, which have at times left their vessels stranded at Egyptian ports.
State buyer GASC is seeking wheat for shipment from Feb. 11-20. The offers were submitted after the usual GASC deadline of noon local time (1000 GMT) because of a lengthy meeting to bring traders back to the deal table.
Egypt has been looking to address the concerns of traders who have added premiums of up to $500,000 per cargo and at times sat out of tenders because of the disagreements over inspections and import standards.
"Offers will be presented against the promise that issues will be resolved," said a Cairo-based trader just after the GASC meeting. He did not specify what issues will be resolved.
The Agriculture Ministry said on Tuesday it would revise legislation governing its quarantine service, a body that has rattled grain markets in recent years by applying tough import rules and rejecting shipments.
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