Egypt will resume exports of rice in October, lifting a ban imposed since 2008 to protect the domestic market, daily newspaper al-Borsa cited the agriculture minister as saying. Egypt, once a major medium-grain rice exporter, banned rice exports in March 2008 and renewed the policy repeatedly to head off local market shortages and cap prices. It last renewed the ban in October.
"The government has agreed to resume rice exports at the beginning of October. This is after local production rose enough to be able to cover market needs. The availability of a surplus for exports does not affect local prices," Minister Salah Abdel Momen told al-Borsa. Abdel Momen added that the decision to lift the ban will allow Egyptian farmers to benefit from rising global rice prices but that, if local prices increase in a way that harms local consumers, the ban may be enforced again. Soaring food prices in 2008 caused riots in a number of countries, including Egypt, and droughts in the United States and Black Sea bread baskets have this year sent prices of other grains sharply higher.
In 2007, Egypt exported 1.25 million tonnes of rice and provided around 35 percent of the medium-grain rice sold on the world market that year. Others, such as Russia, have grabbed Egypt's share since. The government started procuring rice directly from local farmers in October 2011 in order to build reserves. The move was intended to smooth out the exaggerated price movements that were offered during tenders for local rice. Egypt needs around 1.1 million tonnes of rice a year for its subsidy programme - around a third of its total consumption of 3.34 million tonnes.
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