India explores barter trade with economically distressed Egypt during credit line negotiations

According to sources, India is considering the option of initiating barter trade involving commodities such as fertilizers and gas with Egypt. This proposal is part of a broader agreement that could involve New Delhi providing Cairo with a credit line amounting to several billion dollars, as reported by Reuters.

As per a source familiar with the matter, an agreement is expected to be unveiled later this month during Indian Prime Minister Narendra Modi's inaugural visit to Egypt. The North African nation, grappling with an extended shortage of foreign currency, is anticipated to benefit from the agreement.

“The agreement would allow Egypt to make purchases in rupees and bartering is being considered as a means to settle this debt through the sale of Egyptian products that might be of use for India,” the source said.

An Indian official stated that India's foreign ministry is engaging in consultations with various departments to gauge their interest in obtaining fertilizers and gas from Cairo as partial payment for the credit line being extended.

New Delhi has expressed a strong interest in diversifying its fertiliser imports, particularly following the challenges faced in 2021 due to Chinese export restrictions and a significant surge in prices, according to an Indian official.

In the proposed arrangement, Egypt has shown interest in receiving wheat supplies and other commodities. However, the Indian official noted that New Delhi is unlikely to ship wheat due to its existing ban on wheat exports.