Egypt to stop rice exports from September

An Egyptian rice farmer shows his drought damaged rice crop and cracks in the rice terrace soil caused by more than 30 days of no rain in a village near Balqis, 260 km (162 miles) northeast of Cairo June 14, 2008. REUTERS/Nasser Nuri (EGYPT)
An Egyptian rice farmer shows his drought damaged rice crop and cracks in the rice terrace soil caused by more than 30 days of no rain in a village near Balqis, 260 km (162 miles) northeast of Cairo June 14, 2008.  REUTERS/Nasser Nuri   (EGYPT)
An Egyptian rice farmer shows his drought damaged rice crop and cracks in the rice terrace soil caused by more than 30 days of no rain in a village near Balqis, 260 km (162 miles) northeast of Cairo June 14, 2008. REUTERS/Nasser Nuri (EGYPT)

Egypt’s Ministry of Trade and Industry will ban the export of all types of rice starting September 1, a Ministry official said on Thursday.

The ministry is yet to decide on the duration of the ban, said Sayed Abu Qomsan, a deputy for the minister.

Egypt is expected to produce 2.7 million tons of white rice this season.

The Ministry stated that a 750,000-ton gap will be filled by stocks.

The Ministry’s statement also said that any export licenses, granted according to the 2014 allowance, could still be used.

Last October, Egypt said it would allow the export of rice on condition that traders sell the government one ton of rice at 2,000 Egyptian pounds ($255.43) for every ton of rice they export. Exporters also had to pay a tariff of $280 on every ton exported.

The country first imposed a ban on exports in 2008 saying it “needed to save the rice for local consumption and wanted to discourage rice farmers from growing the crop to save water.”

Earlier bans have been reversed following pressure from traders, who argue that bans open the door for illicit trading.

Egypt had started lifting the ban in October 2012, through holding export licence tenders at the Trade Ministry.

Export licences were last sold in an auction at the trade ministry in November 2013 to sell 102,000 tons of rice abroad.

The licences were suspended just days after being issued sending confusion to global markets.

The country consumes nearly 3.3 million tons of rice annually. Its rice production in the 2014 season meanwhile stood at 4.3 million tons.

About Khalid Al Mouahidi 4504 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network