Market Trends of Egypt Rice Industry
Rising Rice Production Potential in the Country
Rice is a cornerstone of Egyptian agriculture, featuring prominently in home-cooked meals and restaurant menus. A prime example is Koshari, Egypt's national dish and a cherished street food, where rice is the star ingredient. Another popular dish is Ruzz mu'ammar bi-I-tuyur, or baked rice with milk and pigeon, commonly found in restaurants in major cities like Alexandria.
From May to September, Egypt's high solar radiation, extended daylight, and cool nights provide optimal conditions for rice cultivation. As a result, rice is sown in Egypt from early May to late June, with harvesting taking place between mid-August and mid-October. The country primarily cultivates short and medium round grains, predominantly of the japonica type, with renowned varieties including Sakha "101, 102, 104" and Giza "177, 178".
Rice cultivation, mainly in the northern Delta, requires a specialized irrigation regime. While often sown on lower-quality, saline soils with variable productivity, rice is also cultivated, albeit limitedly, in the middle Delta and Upper Egypt. Farmers frequently exceed government-designated cultivation areas, risking fines of LE 600 per acre. This defiance is driven by rice's significantly higher profitability compared to traditional summer crops like corn and cotton, along with its robust export potential. To conserve water, the government is trying to reduce rice cultivation while simultaneously expanding corn acreage.
Increasing Imports of Rice Varieties
In 2021, Egypt showcased its prominence in the North African rice market, boasting a per capita supply of 60.9 kg of paddy rice annually. The nation's demand has consistently surpassed its production, necessitating a dependence on rice imports. The Egyptian government procures its rice imports from China, India, Thailand, and Russia. For 2023, Egypt's rice imports are anticipated to hold steady at 450,000 metric tons, aligning with figures from the prior marketing year.
On February 21, 2023, the General Authority for Supply Commodities (GASC) took steps to acquire 50,000 metric tons of rice from India. Despite companies presenting offers amounting to 175,000 metric tons, GASC opted for bids from three Indian rice suppliers and one supplier for 25,000 metric tons of Vietnamese rice. GASC sealed two contracts, the first for 25,000 metric tons of Indian rice at USD 534 per metric ton, with shipments slated between April 17 and May 5; the second mirrored the quantity at a rate of USD 545 per metric ton, scheduled for May 5 to May 20 shipments. During the 2022-2023 period (October to July), traders secured around 384,000 metric tons of milled rice from international markets. In this span, China led as the primary exporter to Egypt, sending over 204,700 metric tons, trailed closely by India at 172,673 metric tons. Experts opine that India's recent export ban on non-basmati white rice will exert minimal influence on Egypt's import patterns. Predominantly, Egypt's rice imports feature long-grain, basmati, and jasmine varieties, with sporadic acquisitions of other types to satisfy niche consumer demands.
