SINGAPORE, May 12: India and Pakistan are finding it tough to strike wheat deals with Egypt despite a stamp of approval from the Middle East buyer, and prospects are dimming with every drop in US prices, senior industry officials said on Monday.

Both countries have now got a foot into the door of the large Egyptian market after the country’s quarantine authority gave the green light to Indian supplies last month. It had approved imported wheat from Pakistan last year. But eager exporters from South Asia are hardly seeing any sales now.

“India and Pakistan will surely find it tough to crack the Egyptian market,” said a Singapore-based grains trader, dealing in grain exports from the two South Asian suppliers.

Another trader said while Indian wheat had been approved, Egyptian buyers were quality conscious not going to switch sources too easily.

Egypt, one of the world’s largest wheat buyers, annually buys up to seven million tonnes of wheat.

It was ranked the top export destination for US wheat in the past five seasons but slipped to number six in 2002/03, as it opted for cheap supplies from new origins after US prices rose to five-year-highs late last year.

Some Asian traders said in addition to the bigger US crop, Egypt’s decision to approve wheat from new origins could keep downward pressure on Chicago wheat prices, making it difficult for South Asian sales.

“US exporters will certainly try and preserve that all important market, while Egyptian buyers will try to keep US suppliers on tenterhooks,” said one regional trader. “India and Pakistan will be lucky if they can steal even a few deals.”

Pakistani milling wheat was offered at around $132 a ton FOB and Indian milling wheat was quoted at about $120 a ton FOB—while some US grades were quoted higher than $135 a ton.

“I do see small amounts going from India and Pakistan to Egypt but not on a consistent basis,” said Mark Samson, vice-president of South Asia for the US Wheat Associates.

Asian grain trade officials said if some sales took place from South Asia in coming weeks, Pakistan could have a slight edge over Indian grain at current prices.—Reuters