Algeria barred French companies from participating in a wheat import tender this week, mandating that bids exclude wheat of French origin, trading sources told Reuters.
Six sources familiar with the situation told Reuters that this time French firms did not receive an invitation to participate, and non-French companies that did take part were instructed not to offer French wheat as a supply option.
The state grains agency OAIC did not provide an explanation to firms regarding its decision, which is believed to be linked to the deterioration of diplomatic relations, particularly concerning the Sahara.
This move follows growing diplomatic tensions between Algiers and Paris, triggered by France’s recent support for Morocco’s Sahara autonomy plan, which led Algeria’s Foreign Ministry to voice disapproval and recall its ambassador to France.
The same source noted that this decision, similar to a dispute 3 years ago that sidelined France from Algeria’s wheat tenders for several months, could bolster the dominance of Black Sea supplies, particularly Russian wheat, in Algeria’s vast import market.
Reuters noted that Algeria held one of its regular tenders on Tuesday, with traders estimating that the state grains agency OAIC purchased over 500,000 metric tons.
These tenders operate on an optional-origin basis, allowing sellers to choose the grain’s origin from a range of approved sources, including French wheat.
For the record, Algeria, one of the largest wheat importers globally, relied heavily on France as its main supplier for many years.
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