Sellers who ‘hide’ rice from customers risk prison: Egypt
-
Raven Ruma
- . November 17, 2022
- . Update: November 17, 2022 2:41 pm
The government of Egypt has said that producers and sellers who withhold supplies of rice will now face prison sentences and large fines amid a sharp rise in food prices.
The council of ministers of Egypt decided to label rice a strategic good. The ministers warned sellers who “withhold rice from circulation, whether by hiding it or not offering it for sale or refraining from selling it.” They also asked rice producers, distributors, suppliers and sellers to report the amounts and kinds of rice in their possession to the supply ministry.
The decision was taken after the monthly meeting among the council of ministers. The ministers knew that some rice producers and salesmen were withholding their supplies to drive up prices and earn more profit.
According to the cabinet’s directive, first-time violators of the directive will be punished with at least one year in prison and a fine of no less than 100,000 Egyptian pounds and no more than 2 million pounds. If a seller repeatedly violates the directive, he will be punished with at least two years in prison and double the first fine.
Read | US, Egypt ponder expanding bilateral ties
The cabinet’s directive also issued a price cap of 18 Egyptian pounds per kilo on all the rice sellers in the country. With this directive, the government aims to stop sellers from cornering the market amid a sharp rise in food prices.
According to Egypt’s state-run statistics agency Capmas, food prices have reached all-time highs in the country. Reportedly, a kilogram of rice is now being sold for between 17 and 20 Egyptian pounds. Food prices have witnessed a sharp rise when comparing it with the previous year. Last year, rice was sold for 8 Egyptian pounds.
Reportedly, imported rice is sold to holders of state-issued ration cards for 10.5 Egyptian pounds per kilogram. The annual urban consumer inflation climbed to a four-year high of 16.2% in October.
