Syria rice trade report

Rice consumption is increasing moderately, in line with population growth and imports are forecast to exceed 300,000 tons in 2010. Egypt, Syria’s major supplier, severely restricted exports during 2008 and early 2009 seasons. This affected the Syrian market and caused higher retail rice prices. The export restrictions, although significantly reduced, are still in place. Consumption In Syria, rice consumption is increasing due to population growth and the presence of over one million Iraqi refugees in Syria. Each Syrian is entitled to 0.75 kilogram of rice per month at 10 SP (21 U.S. cents) per kilogram under the Government of Syria (GOS) ration card system. There was a delay in distribution of the rationed rice during 2009 due to the delay in imports after Egypt restricted rice exports in 2008 and early 2009. This created additional demand for rice in the free market and prices doubled. Traders had to look for other rice suppliers to supply the local market demand. The increased prices did not go down when the global prices did. This is very different from the wheat, barley and corn situations where prices started to drop shortly after international prices started to go down. Rice is selling at higher prices than in neighboring markets because the Syrian traders imported the rice at the height of the market. Import Trade Matrix Units 1000 MT Imports for:2009 U.S. 6 Egypt 150 Thailand 100 Australia 5 Pakistan 5 Spain 5 Italy 5 Vietnam 10 CY 2009 was not a normal year for the importers or the consumers who still prefer to import and consume Egyptian medium grain rice due to the price factor. As with consumption, imports are forecast to grow in general, taking into consideration the increase in population and the continued presence of over one million Iraqi refugees. Further improvements in the political and security situation in Iraq could start to reduce the refugee population. Egypt, Thailand, Australia, Italy, Pakistan, Spain and the United States are the traditional suppliers. India and Vietnam have recently emerged as small suppliers. Marketing: Syrian consumers generally prefer medium grain rice from the United States, Australia, Italy and Egypt to long grain rice from Thailand and short grain rice from Vietnam. In addition, the Iraqi refugees are more accustomed to long grain. However, the limited purchasing power of the average Syrian influences the decision to seek out cheaper sources of rice.