Government to extend rice export ban to secure local market needs

Egypt's Cabinet surprisingly decided to set the buying price of rice from the farmers in the new season starting in August based on supply and demand mechanisms.
'We will not determine the buying price of rice and will adopt the supply and demand mechanisms, allowing competition between public sector and private mills,' Minister of Supply and Internal Trade Ali Meselhi told Daily News Egypt.

The question is can the government succeed in implementing its plans to liberalise the price of rice, and set it based on the supply and demand mechanisms, especially that #Egypt has never suffered from a shortage of supply of rice?

The government will extend the rice export ban to secure the local market needs

The Cabinet decided to extend the ban on exporting rice during the coming season, in a move to secure the needs of the local market.

So what is the problem in the rice market in Egypt?

The crisis emerges when the government offers low purchase price for farmers who refuse to sell their crops at such prices, forcing the government to import Indian rice that infuriated citizens because the private rice mills buy the rice crops at high prices.