Sources told Reuters that India is exploring a proposal to initiate a barter agreement for goods such as fertilizers and gas with Egypt as part of a broader deal that could see New Delhi extend a multi-billion-dollar credit line to Cairo. An informed source indicated that the announcement of the agreement is likely to occur later this month during Indian Prime Minister Narendra Modi's first visit to Egypt, which is facing a prolonged shortage of hard currency.
The source added, "The agreement will allow Egypt to make purchases in rupees, and the barter is being considered as a means to settle this debt by selling Egyptian products that may benefit India." An Indian official mentioned that the Indian Ministry of External Affairs is consulting with various departments to discuss the extent of their interest in purchasing fertilizers and gas from Cairo as partial payment for the credit line.
The Indian official noted that as part of this facilitation, Egypt is keen on obtaining wheat supplies, among other items, but it is unlikely that New Delhi will export grains due to a wheat export ban. Egyptian Minister of Supply Ali Moselhi confirmed that "the matter is dependent on negotiations that will determine the participating companies and the goods to be traded," indicating that while there are many discussions, the model has not yet been finalized.
