Egypt sets buying price for local rice paddy

CAIRO: Egypt will pay its farmers 4,400-4,700 Egyptian pounds ($246.22-$263) a tonne for rice paddy, an unprocessed form of the grain, collected during the harvest season, state news agency MENA said Monday.

MENA did not specify the quantities that the government is seeking to purchase.

The North African country consumes about 3.3 million tonnes of rice a year, typically harvested in August and September.

In an effort to conserve scarce water resources, Cairo this year reduced the total area permitted for rice cultivation and imposed harsh new penalties on farmers who plant illegally.

Traders said the policies are likely to prompt Egypt to import up to 1 million tonnes of rice next year after decades of growing a surplus and being an exporter of a medium grain variety prized in Arab markets.