Egypt halts rice exports once again to meet domestic demands

[DJKeefy]

Egypt will begin halting rice exports in order to pre-empt a domestic supply shortage, as the government needs around 1.4 million tonnes of rice to distribute through its subsidy cards.

According to Al-Ahram's Arabic website, Egyptian Minister of Supply and Interior Trade Mohamed Abu Shady has agreed with Prime Minister Hazem El-Beblawi to stop exports on rice in order to meet all market demands, which currently stands at four million tonnes.

Rationed food reaches around 69 million people out of a total population of 90 million.

"Egypt's rice production in 2013 is estimated at 7.5 million tonnes; the result of cultivating 2.2 million feddans," supply ministry spokesman Mahmoud Diab told Ahram Online.

In October 2012, the Egyptian government announced that it would resume exporting rice following a four-year ban.

In March 2008, then-trade minister Rachid Mohamed Rachid imposed a blanket ban on Egyptian rice exports in hopes of shoring up waning rice supplies in the domestic market.

According to Egypt's General Organisation for Export & Import Control, Egyptian rice exports have generated a total of $186 million so far in 2013.

Despite the export ban, this figure rose in 2009 and 2010 to $409 million and $334 million, respectively.

Rice exporters have urged Abu Shady to reopen the door for exporting, especially since average exports have declined from 1.2 million to 400,000 tonnes per annum.

Source: http://english.ahram.org.eg/News/83740.aspx

[A-Four]

So, in short we can expect farmers next year to be growing anything other than rice or grain, to ensure a decent return for their product, this will only be possible where it is able to guarantee an international market price.

.............start stocking up on flour.