February 19, 2009
Egypt mulls US$179 million fund for local wheat, corn purchases
The Egyptian government is mulling a 1 billion Egyptian pounds (US$179.1 million) fund for the local procurement of corn and wheat from farmers, Al Alam Al Youm newspaper reports Wednesday (February 18).
Cash for the fund would come from the returns of an EGP1,000/tonne export fee imposed on rice earlier this month, the business daily says.
The Ministry of Trade and Industry had said earlier in February that it will allow some traders to export certain quantities of rice as of Feb. 21 after having imposed a rice export ban since April 2008.
Exports would only be allowed through traders that supply rice to the state-owned General Authority for Supply Commodities as part of the subsidy program.
The paper quotes unnamed officials as stating that Egypt was expected to export close to 1 million tonnes of rice under the new system.
The new fund would aim to encourage local farmers to expand their production of strategic crops such as wheat and corn.
US$1 = EGP5.57169 (Feb 19)
