- Algeria has barred French companies from participating in a wheat import tender.
- The decision is due to renewed diplomatic tensions between Algiers and Paris.
- Algeria has long relied on France as its primary wheat supplier.
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Algeria, one of the world’s largest wheat buyers, has long relied on France as its primary supplier.
Algeria has barred French companies from participating in a wheat import tender this week and stipulated that firms submitting bids must not offer wheat of French origin, according to trading sources.
This decision appears to stem from renewed diplomatic tensions between Algiers and Paris. The move is reminiscent of a dispute three years ago that saw France excluded from Algeria’s wheat tenders for several months, Reuters reported.
Algeria, one of the world’s largest wheat buyers, has long relied on France as its primary supplier.
However, France’s recent decision in July to support a plan placing Western Sahara under Moroccan sovereignty has strained relations with Algiers, which backs the Polisario Front’s push for an independent state in the region.
In response, Algeria has excluded French-origin wheat from its latest tender. On Tuesday, the state grain agency OAIC held a regular tender, with traders estimating that over 500,000 metric tons of grain were purchased.
Algeria’s state grain agency, OAIC, typically holds tenders on an optional-origin basis, allowing sellers to choose from a range of approved wheat sources, including French wheat.
However, this week, French firms were notably absent from the invitation list, and non-French companies were asked not to propose French wheat as an option, according to six sources familiar with the matter.
While OAIC provided no formal explanation, the decision is widely believed to be a reflection of deteriorating diplomatic ties between Algiers and Paris, notably regarding the Western Sahara issue.
Although French wheat was unlikely to secure business due to its poor harvest and higher prices compared to Russian wheat, Algeria’s current main supplier, the move signals a broader exclusion, preventing French firms from offering other wheat origins. This raises concerns about how long this ban on French wheat might continue.
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