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Thursday, 13 October 2016

Agriculture and Supply ministries feud once again over wheat collection

Surprise, surprise: the ministries of agriculture and supply are once fighting over how to manage the wheat harvest, a source from the agriculture ministry tells Al Borsa. The Agriculture Ministry wants (and has publicly promised) to raise prices for the wheat it buys from farmers to EGP 450 per ardib, something vehemently opposed by the Supply Ministry. The latter is trying to revive the wheat subsidy system proposed last year by former minister Khaled Hanafy, which would buy wheat from farmers at the international market price and pay them an additional EGP 1,300 per feddan of wheat farmed. The move was widely rejected by the House of Representatives, which forced the Ismail cabinet to backtrack on the policy. Hanafy had long maintained that failure to implement this system was one of the reasons why the harvest remains so problematic. MPs are pushing to Agriculture Ministry to be more generous: Yasser Omar, a member of the House committee that investigated fraud in this year’s harvest, tells the newspaper that he will push for farmers to be guaranteed EGP 550 per ardib.

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