{"id":18331,"date":"2024-11-11T18:14:10","date_gmt":"2024-11-11T16:14:10","guid":{"rendered":"https:\/\/zawia3.com\/?p=18331"},"modified":"2026-10-09T04:26:22","modified_gmt":"2026-10-09T02:26:22","slug":"rice","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/rice\/","title":{"rendered":"Farmers and Traders Stockpile Rice to Raise Prices Amid Absent Oversight"},"content":{"rendered":"

A segment of rice farmers this year has stored its output, refusing to sell the crop because of what they called the low price per tonne offered to them by traders, which does not match the rising cost of production. This may cause an imminent crisis if the new output is not put on the market, especially as a large part of what retailers are offering so far is last year’s 2023 output.<\/p>\n

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Zawia3 contacted a number of rice traders and carried out field visits to check the rice on offer in the markets, and the traders confirmed to us that what is on offer is the 2023 output, not this year’s crop, which was harvested last September, 2024. Many farmers confirmed that they are storing their output because the selling price is not profitable, while others accused traders and mill owners of withholding what they bought from farmers who were forced to sell all or part of their output to pay off their debts, with these traders deciding to release it after winter sets in and the rains fall, at a higher price, exploiting the market’s thirst for the new crop. Some farmers agreed with them on this and decided to sell their output after its price rose.<\/p>\n<\/blockquote>\n

Recommended reading:<\/strong> The Cotton Season in the Wind: The Repercussions of Falling Prices on Farmers<\/a><\/p>\n

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Stockpiling Rice<\/h3>\n

Ayman Abdel Sattar* (43, born in Dakahlia Governorate) planted three feddans of rice this year, yielding ten tonnes. Since harvesting his crop he has not sold it, deciding to store it, attributing this to the low amount offered to him by traders to buy a tonne at EGP 15,000, which he considered unsuitable for the cost of cultivating a feddan.<\/p>\n

He says, speaking to Zawia3: “I harvested my crop on 20 September and have not sold it to this moment, because the profit margin does not match the cost I spent on growing it, in addition to my hard effort during the agricultural cycle. As a result of the traders’ intransigence over raising the purchase price, I preferred to keep my crop until a suitable offer arrives.”<\/p>\n

He adds: “The cost of cultivating a feddan this year is estimated at about EGP 40,000, including the rent, and does not include the cost of my work as a farmer.” A feddan yields between three and 3.5 tonnes of rice. Abdel Sattar sold a tonne in December 2023 for EGP 19,600 per tonne, but he believes the price this year should not fall below EGP 20,000 per tonne.<\/p>\n

Abdel Sattar reveals that traders have agreed among themselves to fix the price at which they buy a tonne of rice from farmers, as a means of pressure, which ultimately pushes farmers to sell their output cheaply, and that some traders collected quantities of rice from the markets at the beginning of the season to store them until prices rise. Many farmers discovered this, which prompted them to refrain from selling their output to traders until a suitable price offer arrives. He adds: “I will not give up the value of my effort and months of work during the rice cultivation cycle.”<\/p>\n

Naguib El-Mohammadi<\/strong>, head of the farmers’ syndicate in Dakahlia Governorate, also planted three feddans of rice and has sold none of it despite his debt to the bank, as he decided to store it after traders offered him a price of EGP 15,000 per tonne, which he considered a low price.<\/p>\n

He adds, speaking to Zawia3, that the Ministry of Agriculture did not provide seeds to farmers who planted outside the crop rotation, considering them violators. He considers the price offered by traders to buy a tonne of rice to cover the cost, but not to achieve a profit margin for them, estimating the fair selling price of a tonne of paddy rice at no less than EGP 17,000 and of white rice at EGP 18,000.<\/p>\n

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The head of the Dakahlia farmers’ syndicate holds traders responsible for some of them withholding this year’s crop from the markets, in addition to farmers refusing to offer their output at the meagre price traders offer to buy it, which has raised the price of rice available in the markets. He noted that last year’s rice on offer in the markets was close to being infested with weevils. According to El-Mohammadi, the area planted with rice in Dakahlia Governorate is 180,000 feddans within the rotation set by the ministry, and 407,000 feddans in violation.<\/p>\n<\/blockquote>\n

Recommended reading:<\/strong> Egypt Is the Most Affected by Food Price Inflation… Why?<\/a><\/p>\n

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Self-Sufficiency<\/h3>\n

According to Hussein Abu Saddam<\/strong>, head of the Farmers’ Syndicate in Egypt, the area planted with rice, officially and unofficially, nationwide reached 1.6 million feddans, an increase of 200,000 feddans over the previous year, 2023. Production is estimated at about 3.5 million tonnes of white rice, an increase of 200,000 tonnes over the previous year, 2023.<\/p>\n

Rice is grown in only nine governorates: (Alexandria, Damietta, Dakahlia, Port Said, Sharqia, Ismailia, Beheira, Gharbia and Kafr El-Sheikh). Abu Saddam justifies some withholding their crop by their desire to sell it at a high price, as the price of a tonne of paddy rice ranges from EGP 15,000 for long grain to EGP 16,000 for medium grain, which is lower than last year. The head of the Farmers’ Syndicate estimates the average cost of cultivating a feddan of rice at about EGP 50,000, including rent.<\/p>\n

\"Variation<\/p>\n

For his part, Ragab Shehata<\/strong>, head of the rice division at the Chamber of Grain Industries of the Federation of Egyptian Industries, denies that farmers or traders have withheld rice from the markets this year. He adds, speaking to us: “Egypt’s production of paddy rice is estimated at about 6.5 million tonnes, equivalent to about four million tonnes of white rice after milling, while Egyptians consume about 3.6 million tonnes, meaning we have a production surplus of 400,000 tonnes this year. We have price stability: this year’s prices are lower than last year’s, as the price of a tonne of paddy ranges from EGP 14,000 to 14,500 for long grain, while medium grain ranges from EGP 15,500 to 16,000,” denying that the authorities have exported rice abroad this year.<\/p>\n

\"Rice<\/p>\n

According to the agricultural statistics bulletin<\/a> issued by the Ministry of Agriculture for 2022, the total area cultivated with rice was estimated at 1,149,427 feddans, with a productivity of 3.741 tonnes per feddan, while total production is about 4,300,578 tonnes. The area of old lands is 1,045,533 feddans, while the area of new lands is estimated at 103,894 feddans. However, the Ministry of Water Resources and Irrigation issued Ministerial Decree No. 543 of 2023, which reduced the total area permitted for rice cultivation to 724,200 feddans, by 37%.<\/p>\n

Article 3 of the decree prohibited growing rice outside the permitted areas, and provided for coordination between the irrigation sector of the Ministry of Water Resources and Irrigation and the agricultural services sector of the Ministry of Agriculture to grow new drought- and salinity-tolerant varieties in additional experimental areas: 200,000 feddans planted with water-saving rice strains, and 150,000 feddans irrigated with relatively high-salinity water from the irrigation and drainage network and lands with soil problems in the governorates permitted to grow rice in the Delta.<\/p>\n

\"Decline<\/p>\n

Recommended reading:<\/strong> Farmers Facing Water Poverty… Groundwater Wells for Fear of Government Decisions<\/a><\/p>\n

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Inflated Costs and Exploitation<\/h3>\n

Abdel Sattar was forced to buy a sack of chemical fertiliser for EGP 1,300, especially as he did not receive a single sack from the agriculture directorate to which he belongs, because he grew rice unofficially outside the crop rotation set annually by the Ministry of Agriculture.<\/p>\n

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El-Mohammadi also complains about the rise in production costs this year, which will be reflected in the final price of the product, as the price of a sack of granular superphosphate<\/a> rose from EGP 150 to 320, while the price of powdered super rose from EGP 90 to 240, and the cost of harvesting a feddan doubled from EGP 1,000 to 2,000 in the period from 2023 to 2024. In addition, production costs rose so that the total cost per feddan, excluding rent, reached EGP 15,000, at a time when rent ranges from EGP 40,000 to 45,000 per feddan a year.<\/p>\n<\/blockquote>\n

Exorbitant prices for a kilo of rice from one place to another, beyond the purchasing power of ordinary people, have pushed families to rely on subsidised bread in their main meals because they cannot afford the price of a kilo of rice, while other families have reduced their weekly consumption of it. Among them is Maha Osama<\/strong>* (63, a housewife). She tells us: “The monthly income of my family of four does not exceed EGP 6,000, and with the economic conditions and the high prices of services such as water, electricity and gas, I have become unable to cook every day; I only cook two or three times a week, and the rest of the week we eat bread. My financial means do not allow me to buy a kilo of rice every day with the high prices in the markets.”<\/p>\n

Amazon<\/a> Egypt priced a kilo of “El Doha” rice at about EGP 35.35, while a kilo of “El Saa” rice costs EGP 47.8, a kilo of Sohagy rice sells for EGP 41.5 and “Rayhana” for EGP 34 per kilo, while a kilo of packaged rice<\/a> sells for prices ranging between EGP 28 and 35 at Hyper Misr branches in Heliopolis and Ard El Golf.<\/p>\n

In Damietta, one of the largest rice-growing governorates, we contacted some traders to ask about the price of a wholesale sack of rice for home consumption. Prices ranged from EGP 685 for a 25-kilo sack, or EGP 27.4 per kilo, while another trader replied that the retail price was EGP 865 for a 25-kilo sack, or EGP 34.60 per kilo.<\/p>\n

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The head of the Dakahlia farmers’ syndicate blames the intermediaries for the rise in the price of a tonne of white rice to EGP 38,000 in some markets, even though traders bought it as paddy from farmers at a price not exceeding EGP 15,000. Bran represents 35% of the crop, meaning that a tonne after milling yields 650 kilos. He advised citizens not to stockpile rice and to buy limited quantities according to their needs.<\/p>\n<\/blockquote>\n

Ahmed Abu El-Dahab<\/strong>, a rice mill owner, defends mill owners, telling us: “We are not the cause of the price increase or the withholding of the commodity. Some farmers decided not to sell their crop this year when the selling price of a tonne of paddy rice fell from EGP 20,000 in 2023 to a maximum of EGP 16,000 this year, although last year’s high price was due to several factors, most importantly the fluctuation of the dollar price, which reached EGP 70 on the black market, in addition to the export of part of the output, while the dollar price is currently stable at EGP 48.”<\/p>\n

According to Abu El-Dahab, farmers want to sell their crop at a price higher than the global price of the commodity, whether in China, where it is priced at 32,000 per tonne, or India. This comes at a time when the local price of rice after milling at the mill ranges from EGP 22,500 to 28,000, varying by quality and percentage of broken grains, and any further increases are caused by intermediaries, as he puts it. He believes that consumers will not accept any increases beyond this level, as purchasing power for rice has declined this year and does not encourage moving the market: those who used to buy 100 kilos have cut their consumption to 25, at a time when the global market for the commodity controls everyone.<\/p>\n

Recommended reading:<\/strong> Between Rising Fertiliser and Seed Prices… Why Are Farmers Silently Leaving the Land?<\/a><\/p>\n

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Climate Change<\/h3>\n

The climate change the world, including Egypt, has witnessed has greatly affected grains, which have been affected by rising temperatures and humidity, as these changes contribute to crops being infected with pests and sometimes damaged. Rice is one of the crops affected by these changes, though the least affected. In this context, Hussein Abu Saddam, head of the Farmers’ Syndicate, reveals the impact of these changes on rice. He says: “High temperatures contribute to the crop being infected with pests such as blast, root rot and the fall armyworm, and although farmers have planted new varieties supposed to adapt to some climate changes, extraordinary changes negatively affect crops in general.”<\/p>\n

According to the Climate Change Information<\/a> and Expert Systems Center of the Ministry of Agriculture, heatwaves increase rates of infection with rice blast disease, as plant weakness is a direct cause of the crop being infected with fungal diseases, including rice blast. Mohamed Ali Fahim, director of the Climate Change Information Center, commented that the varieties currently planted are resistant to blast, except Sakha 101 and Sakha 108, and that plant disease resistance may break down because of climate pressures. Blast is considered one of the most dangerous rice diseases in Egypt, as it caused the disappearance of old varieties owing to the possible emergence of new physiological strains of the disease, leading to a shortage of the rice crop. The disease thrives in moderately high temperatures and high humidity, and the fungus spores do not form at humidity below 90%.<\/p>\n

According to Fahim, symptoms of infection include small spots that gradually grow, with the centre turning a dirty grey and straw-coloured while the edges of the spots are dark brown. The infection may extend to the grain husks, which shrivel and turn pale white, and grey spots appear on infected grains. When the infection intensifies, the whole panicle is infected and turns grey; the earlier the infection, the greater the damage and the more severely the crop is affected.<\/p>\n

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Although his crop was not infected with pests this year, three years ago 50% of his crop was infected with rice blast, which caused him heavy losses. Abdel Sattar says: “I was surprised that 50% of my crop was infected with it in 2021, which caused the loss of 50% of my output. I treated the infections with pesticides and took precautions so that it would not happen again, but with the high temperatures this year, the yield per feddan fell by about half a tonne compared with the previous year.”<\/p>\n<\/blockquote>\n

The head of the Dakahlia farmers’ syndicate attributes the losses of many crops this year either to their infection with pests or to the crop burning, which led to lower yields this year compared with last year. He says: “Climate change has cost farmers much of their income, and its harmful effects have reached all crops, including rice, as the yield per feddan fell from four to three tonnes, cotton productivity fell from eight to four qantars per feddan, and maize productivity fell from 35 ardebs. The high temperatures Egypt witnessed this year also generated pests and reduced yields of some crops by 50%.”<\/p>\n

He adds: “I was surprised that the panicles of the crop planted with the Super 300 variety shrivelled after the panicle had fully formed in August 2024, damaging an area of one feddan and five qirats and reducing the yield per feddan by half a tonne, as this happened again in 2023 and 2024. My land planted with the Giza 78 variety was also infected with blast, and we have become used to dealing with the disease every year with pesticides that are not available at agricultural cooperatives, and we are forced to buy them from shops that sell them, without knowing whether they are counterfeit or not,” calling on the Ministry of Agriculture to provide pesticides at agricultural cooperatives.<\/p>\n

Khalil El-Maleky<\/strong>, research professor at the Agricultural Research Center and former head of the Pesticides Committee at the Ministry of Agriculture, reveals, speaking to Zawia3, that rice panicles were affected by high temperatures, which reduced the production of some varieties by between 25 and 30% in July, August and September of this year, 2024. He called on traders and exporters to turn to Africa for cultivation, which would enable them to export 50% of their output and direct the remainder to the Egyptian market, especially as some of them used to resort to tricks to smuggle part of Egypt’s output abroad in past years.<\/p>\n

Recommended reading:<\/strong> Between Crises and Innovation… What Does the Egyptian Farmer Grow to Face Economic Challenges?<\/a><\/p>\n

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Developing New Varieties<\/h3>\n

Mogahed Helmy<\/strong>, deputy director of the Field Crops Research Institute, says that rice is the summer crop least affected by climate change compared with other crops such as maize.<\/p>\n

He adds, speaking to Zawia3: “Blast is the disease we worry most about the rice crop being infected with, and varieties 101, 104, Super 300 and 108 are among those susceptible to it. If it is infected, the farmer should replace it the following year with another variety less susceptible to the disease,” considering infection with the fall armyworm or any other pest a secondary matter.<\/p>\n

He explains: “If rice is infected with blast, the infection rate does not exceed 5% of the total cultivated area, so farmers can deal with the matter and there is no need to worry,” warning against not dealing with the disease properly or using poor-quality pesticides, which may worsen losses.<\/p>\n

The deputy director of the Field Crops Research Institute reveals the impact of temperatures rising above 45 degrees on pollen during pollination and fertilisation, which researchers fear; apart from that, the rice crop is safe from these changes, and if blast is dealt with properly its effects on the crop will be limited.<\/p>\n

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According to Mogahed, Egypt grows nine varieties characterised by high resilience in the face of climate change, including “Giza 178, Giza 179 and Giza 183”, which are long-grain Indica-Japonica varieties, in addition to medium-grain varieties such as “Sakha Super 300, 301, 302 and 303”. These varieties need a short growing period, consume small quantities of water and tolerate various environmental stresses. Egypt began developing new rice varieties in 1995, when it developed the Giza 178 variety, which is still planted in any land whatever its quality and under any conditions it faces, such as water shortage or salinity. Perhaps the latest varieties developed are Giza 183 and Sakha Super 301, 302 and 303, which were released on the market this year.<\/p>\n<\/blockquote>\n

According to those we spoke to, they direct many demands to the authorities: Abdel Sattar calls for their intervention to set the selling price of rice after setting a suitable profit margin for the farmer, accusing some traders and mill owners of creating a crisis by setting a low price, which pushes many farmers to store their output and not offer it for sale, which will negatively affect the consumer because supply is less than demand. Naguib agrees with him on the need for the authorities to intervene to solve the rice crisis and apply the Constitution by taking on the task of pricing it, activating the price-balancing fund between the consumer and the farmer so that a crisis does not occur every year and to protect farmers from losses, and implementing contract farming to protect farmers from traders’ greed.<\/p>\n

For his part, Abu El-Dahab justifies the position of farmers who refuse to sell their output by the decline in the support provided to them and the rise in their costs, calling for intensified campaigns by regulatory bodies to control the markets and ensure that the crop on offer is this year’s output and not last year’s. He adds: “For the first time, the farmer is withholding his commodity, not the middleman trader or the mill, in order to sell at a higher price that covers production costs,” considering this something that does not frighten them, because the farmer will sell his output whenever he needs money, as his aim is not to starve the market like a monopolist, and the export market does not accept this rise in prices at present, calling on the government to support farmers with production inputs. Meanwhile, the head of the Farmers’ Syndicate calls for tightening oversight of the mills and compulsorily buying part of the crop from farmers to offer it on ration cards and at consumer cooperative outlets at reduced prices, as in the past when the government took 1.5 million tonnes of rice from them, considering the fair price of white rice to be EGP 28 to 30 per kilogram.<\/p>\n","protected":false},"excerpt":{"rendered":"

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