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Monday, 9 May 2016

Prime Minister orders EGP 1 bn to pay farmers as confusion over mismanagement of domestic wheat collection forces them to turn to traders

Prime Minister Sherif Ismail ordered the Finance Ministry to ready EGP 1 bn in emergency funds to pay farmers who have not been paid as a result of the inefficient management of the wheat harvest collection by both the supply and agriculture ministries, Al Ahram reports. Ismail also ordered that storage facilities be made available for domestic wheat. This comes as farmers have been crying foul and accusing the government of prioritizing wheat storage space for imported wheat, which is why the collection of domestically harvested wheat had been stalled, Al Mal reports. Many farmers have been forced to sell part of their harvests to traders for 10% less than the government price of EGP 420 per ardeb. This latest development comes on the back of a dispute between both the Agriculture Ministry and Supply Ministry who blame each other for delays in the collection of harvest as there appears to be no clear delineation of responsibility for managing the collection process, according to Mohamed Farag, head of the Egyptian Farmer’s Union. That said, the government has now gathered 2.8 mn tons out of 4 mn, Farag added.

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