Egyptian rice exporters say tariff is too high

Four months after Egypt approved plans for allowing the sale abroad of its medium-grain rice, exporters complain government regulations, namely export tariffs, are preventing their return to the market.

"The conditions are too tough, a lot of people got the export licenses but are now stuck with them as they can't sell abroad," exporter Salah Abdel El-Aziz, chairman of the board of El Alamia 2000 Rice Mills, said on the sidelines of the Gulfood trade exhibition in Dubai.

In 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 ($262) for every ton of rice they export. Exporters also have to pay a tariff of $280 on every ton exported.

The value of one ton of rice is around 3,500 pounds a ton, exporters said.

Abel El-Aziz said he bought a license to export 500 tons but has failed to do so since then.