IN AN ATTEMPT to control rice prices in local markets, the Rice Committee at the Agricultural Commodity Council decided to stop exporting rice. During a meeting held two weeks ago, the committee took a voluntary decision to stop exporting in order to increase supply on the local market. Mona El Fiqi reports The decision comes into effect on 19 January and it is expected to help in providing rice to consumers at reasonable prices. Rice Committee Chairman Ahmed El-Wakeel announced that if a balance is achieved between supply and demand, exports will resume in June. The committee held several meetings to discuss local rice stocks and found that there is a clear shortage of rice supply. The reason behind this shortage is because some traders buy large quantities of rice and store them to control prices. With this decision, monopoly acts should be eliminated. Nader Noureddin, professor at the Faculty of Agriculture at Cairo University, believes the decision is good since rice prices have risen from LE3 to LE4 per kilo of packed rice. "The government has the right to take appropriate measures to cover the needs of local markets over exports," Noureddin argued. "If exporting rice is not banned, prices will continue to rise to reach LE5 per kilo. This is not affordable for consumers." Due to a decrease in rice production in East Asian countries, international rice prices rose by 60 per cent during December, 2007. Experts expect it to go up even more in the coming few months. "High international rice prices would definitely encourage producers to export rice and ignore the needs of local markets," added Noureddin. "Hence, the committee had to take this decision." Moreover, the move came in response to a recent report by the Food and Agriculture Organisation (FAO) warning countries which depend on importing foodstuffs to take urgent steps to protect the poor from soaring food prices. The report, issued in December 2007, recommended that governments should improve access to boost local production. According to FAO figures, the total cost of imported foodstuffs for Low Income Food Deficit Countries (LIFDCs) in 2007 was 25 per cent higher than the previous year. Noureddin explained that the government should start applying procedures to raise local production of foodstuffs, particularly strategic corps such as wheat, rice and beans. According to him, Egypt is importing 50 per cent of its foodstuffs consumption, such as 70 per cent of beans, 90 per cent of cooking oil and 60 per cent of wheat.
