Country Policy Monitoring

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Main Food-related Policy Measures


(From 1 Jan 2008 to 11 Oct 2011)
   21 Jun 2010  Import tariff on wheat and flour has been increased to support domestic production.
   28 Mar 2011  Allocation of AMD 538.3 million (USD 1.463 million) for a programme aimed at supporting barley production. Import of 2000 tonnes of barley seeds from Ukraine to be distributed to farmers. Free distribution of 200 tonnes of barley seeds to the poorest communities.
   6 Mar 2008  The Government announced its goal to reach wheat self-sufficiency.
   10 Jul 2011  Reimposition of VAT (18%) on imported wheat, rye and flours, previously removed in December 2010.
   15 May 2008  Subsidy on wheat production increased from AZN 40 (USD 49.78) to AZN 50 (USD 62.23) per hectare.
   15 May 2008  Land reclamation activities have been reinforced to raise pthe grain yields.
   15 May 2008  Small processing enterprises and regional centers to purchase, store and sell agricultural goods have been created in several rural districts.
   1 May 2008  Import tariff on grain and rice have been eliminated. VAT is also suspended on imports of grains, rice and flour from May 2008 to May 2009.
   5 Feb 2011  Government sold food grains at subsidized prices to 300 000 fourth class civil servants.
   1 Nov 2010  Fair price cardholders programme resumed, targetting 1.12 million of low income card holders which are permitted to buy up to 20 kilograms of rice per month at BDT 24 (USD 0.34)/kg.
   3 Oct 2010  The Open Market Sale (OMS) of rice at BDT 24 (USD 0.34) per kilogram, which started in August in Dhaka and in some divisional cities, has been extended to the upazila (sub district) level. Rice prices in the open market ranged from BDT 28 to 47, depending on the quality of the commodity.
   15 Jul 2010  Import quota of 400 000 tonnes of wheat allowed in order to stabilize market prices.
   30 Jun 2010  Rice export ban extended until December 2010.
   1 Apr 2010  Import of 25 000 tonnes of rice from Myanmar by the end of April to meet the domestic demand.
   11 Feb 2010  An input subsidy programme of USD 107 million was launched, introducing the Agriculture Input Assistance Card that allows rice producers to open a bank account and receive cash subsidy on diesel. Marginal and small farmers will receive BTD 800 (USD 11.4), medium size farms (land from 1 to 3 hectares) will get BTD 1000 (USD 14.3) as cash incentives.
   3 Feb 2010  The Open Market Sale of rice has been extended after its launch in January 2010 to all Divisional (bibhag) capitals and the three labour intensive districts of Narayanganj, Narsingdi and Gazipur. Rice is sold at BDT 22/kg (USD 0.32/kg), slightly below the national average market price.
   1 Jan 2010  Rice export ban extended until June 2010.
   2 Feb 2010  Allocation of USD 310 million to improve rice irrigation infrastructure over the next two years in order to increase rice exports.
   2 Mar 2011  Sale of 1.1 million tonnes of wheat from governement reserves in two auctions, due to a strong demand from flour mills.
   28 Feb 2011  The major state-linked grain buyers suspended purchases in order to slow inflation in the grain market.
   3 Dec 2010  An amount of 25 million tonnes of grain and oil have been released on the market from the Grain Reserve, to ensure market supplies and stabilize prices.
   26 Oct 2010  Agreement signed with Cambodia to increase rice import from that country.
   12 Oct 2010  Minimum support price of white wheat increased by 5.5 percent to CNY 1 900 (USD 285) per tonne.
   15 Jul 2010  Export tax rebates on 406 products, including fertilizers and corn flour, removed.
   13 Apr 2010  Nearly 80 percent of about 1 million tonnes of state maize reserves has been sold at prices between USD 228 and USD 297 per tonne to reduce rising domestic prices.
   16 Mar 2010  Allocation of CNY 133.5 billion (USD 19.55 billion) to subsidize agricultural production in 2010, with a year-on-year increase of CNY 6.04 billion (USD 879 million).
   26 Feb 2010  Minimum purchase price of white and red wheat has been increased to CNY 180 (USD 26) and CNY 172 (USD 25) per quintal, respectively. These are 3.3 and 3.6 percent respectively higher than in 2009.
   23 Feb 2010  The following policies have been extended until 31 May 2010: reduction of import tariff on wheat by 50 percent; exemption of tariff for maize flour; reduction of import tariff on sesame seed and butter by 25 percent.
   22 Feb 2010  Minimum purchase price for short grain rice variety has been increased to CNY 105/50 kg (USD 15.37/50 kg), 10.5 percent higher than in 2009. Prices of indica rice varieties have been increased to CNY 93 (USD 13.63) and CNY 97 (USD 14.22) per 50 kg bag, respectively. These are 3.3 and 5.4 percent respectively higher than in 2009.
   1 Jan 2010  Licensing system imposed to soyabeans import.
   21 Apr 2011  Government procurement price of wheat increased by 4.5 percent to 11 700 rupees (USD 264) per tonne, in order to support farmers'incomes following bumper harvest.
   1 Mar 2011  Measures aimed at creating additional storage capacity for foodgrain in the rural sector, including subsidies to storehouses and financial support to private sector investment .
   28 Dec 2010  Release of 2.5 million tonnes of wheat and rice from the federal reserve stocks, to Below Poverty Line (BPL) population, to be sold at INR 4.15 (USD 0.092) per kilogram of wheat and INR 5.65 (USD 0.13) per kilogram of rice, significantly lower than market prices. In addition, 2.5 million tonnes of wheat and rice will be released and sold to Above Poverty Line (APL) population at INR 11.85 (USD 0.26) and INR 8.45 (USD 0.19) per kilogram.
   22 Dec 2010  Import tariff (5 percent) on onions suspended, arrangements for new imports and ban on exports untill January 15, 2011. In addition, the Government eliminated the 4% countervailing duty on onions.
   16 Dec 2010  Import ban extended on specific live animals and livestock products from countries with outbreaks of Highly Pathogenic Avian Influenza (HPAI) and Low Pathogenic Avian Influenza (LPAI), for six more months.
   28 Nov 2010  Duty free import of rice, introduced in October 2009, extended to 30 September 2011.
   15 Nov 2010  Plan to release oan amount of 2.5 million tonnes of wheat by June 2011 from federal stocks to be sold at a subsidized price of INR 6.10 (USD 0.14) per kilogram of wheat, and INR 8.3 (USD 0.18) per kilogram of rice (less than half the prices in domestic markets).
   20 Oct 2010  Minimum procurement price of wheat increased by 1.8 percent to INR 11 200 (USD 252) per tonne, for the 2011/2012 marketing year (April/March)
   9 Aug 2010  The Government partially lifted its export ban by allowing the export of 300 000 tonnes of non basmati rice and of 200 000 tonnes of wheat to Bangladesh.
   27 Jul 2010  Distribution of additional 457 000 tonnes of food grain (182 000 tonnes of rice and 274 000 tonnes of wheat) to above poverty line families. Since May 2010, the Government has allocated more than 3 million tonnes of food grain to targeted poor families.
   1 Jul 2010  Release of 5 million tonnes of wheat and rice from state reserves planned under the Open Market Scheme by March 2011.
   18 Jun 2010  The minimum support price for wheat for the 2010/11 marketing year has been set at INR 11 000 (USD 238) per tonne, up from INR 10 800, with an increase of 1.85 percent.
   27 May 2010  The minimum support price for rice has been increased by INR 50 to INR 1 000 for 100 kg common grades (USD 210/tonne) and to INR 1 030 for superior grades (USD 224/tonne).
   14 May 2010  An export quota of 400 000 tonnes of wheat and 100 000 tonnes of rice to Bangladesh have been approved.
   12 May 2010  Approval of an export quota of 200 000 tonnes of non-basmati rice to Sri Lanka.
   6 May 2010  Wheat and rice to be sold through ration shops at a price of INR 8.42 (USD 0.18) and INR 11.82 (USD 0.25) per kilogram, respectively. These prices are lower than the minimum support prices which are: INR 11/kg for wheat, INR 10.50 for paddy common variety and INR 10.80 for higher variety.
   1 Apr 2010  A subsidies programme to support the use of a mix of nutrients and integrate the use of urea with other nutrients has been approved. Before, subsidies were given only on urea, making it cheaply available and endemically overused.
   1 Apr 2010  Minimum support price for wheat for the marketing year 2010/11 (April/March) has been increased to INR 11 000 (USD 247) per tonne, up by INR 200 in the previous year. The Government has planned to buy 24 million tonnes of wheat at the new price by March 2011. Wheat procurement for 2009/2010 marketing year amounted to 22.48 million tonnes.
   1 Apr 2010  Duty-free imports of rice, wheat, pulses, edible oils and raw sugar extended until 31 March 2011.
   3 Mar 2010  An amount of 500 000 tonnes of wheat from government reserves sold to small processors in order to stabilise local prices.
   10 Feb 2010  Export of 250 000 tonnes of wheat to Nepal.
   24 Jan 2011  Temporary suspension of the recently imposed 5% import duty on wheat, soybean, flours and feed products until December 2011, following protests from the industry.
   22 Dec 2010  Import duties increased for wheat, soybean, flours and feed products from the zero rate, effective since 2008, to five percent.
   16 Dec 2010  Import tariff suspended for rice imported by the State Logistics Agency (Bulog).
   1 Jul 2010  An amount of IDR 1.8 trillion worth rice (USD 192 million) has been allocated for West Java administration to be distributed to at least 2.84 million families in the province.
   1 Mar 2010  Rice import ban, in place since 2007, is extended until the end of 2010.
   7 Jan 2010  Under the national food distribution programme, the allotment of 13 kilograms of rice per family per month has been increased to 15 kilograms, by extending the subsidies allocation in the state budget from IDR 11.4 trillion (USD 1.2 billion) to IDR 13.4 trillion (USD 1.4).
   1 Jan 2010  Minimun support price for unprocessed paddy and unhusked rice increased by 10 percent, to IDR 2 640 (USD 0.28) and IDR 3 34 5 (USD 0.35) per kilogram respectively.
Iran (Islamic Republic of)
   15 Sep 2010  Imports of several agricultural products, including wheat and rice, banned until December 2010, in order to support domestic producers.
   13 May 2010  The minimum support prices for wheat and barley have been lowered from IQD 850 000 (USD 727.42) to IQD 650 000 (USD 550) and from IQD 650 000 (USD 385.11) to IQD 450 000 (USD 556.26) per tonne, respectively.
   1 Oct 2010  For the first time in two years, the price of imported wheat to domestic flour millers was increased by 1 percent to JPY 47 860 (USD 562) per tonne.
   2 Sep 2010  Subsidy of JPY 80 000 (USD 989) per hectare to farmers, in order to increase food self-sufficiency ratio.
   1 Apr 2010  The wholesale price of wheat imported by the Government has been increased by 5 percent to JOY 47 160 (USD 521.51) per tonne.
   1 Aug 2011  New raw sugar import tariff approved by Customs Union (Russia, Belarus, Kazkahstan): the minimum import tariff is increased to USD 140 per tonne (from USD 85) and the maximum is set at USD 270.
   20 Apr 2011  Allocation of KZT 88.2 bilion (USD 600 million) as financial assistance to agricultural producers and provision of diesel at subsidized prices for 2011 spring season sowing.
   15 Mar 2011  Ban on oilseed and vegoil exports imposed in mid-October 2010 for six months, is extended for another month, until April 18, in order to prevent shortages and to curb domestic price increase.
   1 Mar 2011  The Committee of Customs Union (Kazakhstan, Russia and Belarus) suspended the 5 percent import duty for wheat, rye and oats, until June 30th, aiming to stabilize prices in the market following drought-reduced 2010 harvests.
   28 Jan 2011  Allocation of KZT 130 billion (USD 866 million) to support development of the livestock sector.
   10 Nov 2010  Grains purchase prices fixed at KZT 33 100 (USD 223) per tonnes for 3 grade soft wheat price, KZT 27 200 (USD 183) for 4 grade soft wheat and KZT 25 000 (USD 168) for 2 grade barley.
   5 Oct 2010  Ban on export of certain types of oilseeds, vegetable oils and buckwheat.
   30 Jan 2010  Requirements to qualify grain exporters and the license obtaining process have been semplified (licences were introduced in 2007/2008 season, when Kazakhstan exported great volumes of grains and it faced a domestic deficit).
   1 Jan 2010  Allocation of USD 33 million to subsidize high transport costs of grain exports in order to make them competitive on the global market.
   1 Jan 2010  The Customs Union formed by Russia, Kazakhstan and Belarus has set common sugar import tariff: in accordance with the Russian scheme, the tariff will be pegged to sugar price in New York and calculated on monthly basis by the Russian Economic Development Ministry
   17 Oct 2008  An amount of USD 3 billion will be allocated in the agriculture sector to help farmers to mitigate the impact of the global financial crisis.
   1 Sep 2008  Ban on wheat export lifted.
   15 Apr 2008  Ban on wheat export imposed.
   1 Mar 2008  Agreements with traders on quantites of grain to be exported.
   4 Mar 2011  Concessional loans at 9 percent interest rates provided by commercial banks to farmers, with amounts varying from KGS 50 000 (USD 1075) to KGS 200 000 (USD 4 300).
   4 Mar 2011  Release of 10 000 tonnes of top-quality wheat from the state reserves to stabilize bread prices.
   4 Mar 2011  Free distribution of flour to around 120 000 low-income families with children (50kg per family) entitled to receive monthly benefits.
   25 Jan 2011  Strategic imports of 25 000 tonnes of wheat at USD 368 per tonne to prepare for the record-high prices in global wheat market.
   2 Nov 2010  Government reintroduced subsidies to wheat millers aiming to stabilize domestic flour prices.
   4 Feb 2011  The wheat procurement target set at 6.5 million tonnes for 2011 in expectation of a bumper crop, with a minimum support price of Rs 950 per 40 kg (USD 11).
   7 Dec 2010  Export licenses granted to the private sector for one million tonnes of wheat, after export plans were suspended in August 2010 due to devastating floods.
   3 Nov 2010  A new ministerial committee has been created to review the existing wheat purchase policy based on guaranteed procurement and issued prices. In the new scheme, the Government’s role may be limited to purchases of strategic reserves only.
   19 Oct 2010  Minimum procurement price of wheat increased by 2.6 percent to PKR 975 per 40 kilograms (USD 285 per tonne).
   7 Oct 2010  The Government allowed the private sector to export one million tonnes of wheat. Earlier export plans were deferred in August after summer floods destroyed around 725 000 tonnes of wheat.
   1 Aug 2010  Planned exports of 2 million tonnes of wheat suspended after summer floods.
   13 Apr 2010  The wheat export ban has been partially lifted by allowing the export of two million tonnes of wheat. In August 2010 the measure has been deferred after summer floods destroyed at least 725 000 tonnes of grain.
   18 Mar 2010  The minimum support price for wheat has been confirmed at PKR 950 (USD 11.30) for 40 kg, as of September 2009.
   5 Feb 2010  A subsidy of PKR 500 (USD 5.79) per 50 kg bag potash has been granted to support farmer’s use of the fertilizer.
   5 Feb 2010  Allocation of PKR 260 billion (about USD 3 million) as credit subsidies for farmers.
   8 Dec 2010  The National Food Authority (NFA) increased the procurement price for rice from PHP 23.50 (USD 0.54) to PHP 25 (USD 0.58) per kilogram. As consequence the retail price increased to PHP 27 from PHP 25.
   30 Sep 2010  Duty-free import of wheat extended for another six months.
   10 Apr 2010  Trade agreement signed with Thailand to import Thai rice with a 40 percent tariff until January 2015. (According to MoU Philippines will buy around 360 000 tonnes of Thai rice every year)
Republic of Korea
   1 Apr 2011  Set up of an international grain procurement company in an effort to secure supply of staple farm products, including wheat, beans and maize.
   28 Feb 2011  Import tariffs removed on maize, soymeal and 32 other items to ensure supply and control of inflation.
   21 Feb 2011  Wheat, soybeans and maize have been included in state reserves, in addition to rice, to secure a stable supply of these commodities .
   24 Apr 2010  The Government will buy 200 000 tonnes of rice in the coming months to facilitate local market price stabilization.
   14 Mar 2010  Increased support to local rice processing industry for 2010, providing KRW 60 billion (USD 53.1 million) for low-interest loans.
Saudi Arabia
   1 Mar 2010  Extension of subsidies on imported feed barley, adjusting rates based on prevailing world prices. In January 2009, subsidy on imported feed barley fell from USD 320 per tonne to USD 53.33 per tonne because of the decline in the world barley prices.
Sri Lanka
   9 Dec 2010  The Government fixed Samba rice maximum retail price at LKR 70 (USD 0.63) per kilogram and Nadu, White, and Red rice maximum retail price at LKR 60 (USD 0.54) per kilogram.
   9 Nov 2010  Ban on sale of flour based food items in canteens and start of a programme to promote rice flour based products in order to support domestic rice consumption and production.
   27 Oct 2010  The Government lifted price control on rice: the price cap of LKR 70 (USD 0.63) per kilogram in market sales imposed in April 2008 has been removed.
   27 Oct 2010  Price control on rice lifted: the price cap of LKR 70 (USD 0.63) per kilogram in market sales imposed in April 2008 has been removed.
   22 Jun 2010  Import tariff of 15 percent on wheat reimposed.The tax was waived in November 2009 to facilitate the use of wheat flour as a substitute during rice shortages.
   22 Jun 2010  Import duty of LKR 10 (USD 0.09) per kilogram set on wheat.
   25 Mar 2010  Rice import tariff has been reinstated.
   7 Jan 2010  An import quota of 25 000 tonnes of rice for the festive season has been allowed, of which high quality varieties (Basmathi and Ponni Samba) were duty free. Import tax on sugar has been reduced.
Syrian Arab Republic
   18 Mar 2010  Maize import tariff of SYP 1 000 (USD 22) per tonne has been set.
   18 Mar 2010  Minimum support price of maize has been set at SYP 17 (USD 0.37) per kilogram, which is higher than maize international price.
   30 Jan 2010  The barley import tax imposed in December has been adjusted at SYP 2 000 (USD 44) per tonne to support barley local production.
   15 May 2011  Allocation of TJS 260 million (USD 58 million) for food subsidies for the most vulnerable families (including elderly and disabled).
   9 May 2011  About 3000 tonnes of fuel will be sold to farmers at below market price, TJS 10-20 (USD 0.02- 0.04) less.
   1 May 2008  Allocation of TJS 140 million (USD 40.57 million) of credit to support agriculture production. An amount of TJS 7.5 million (USD 2.17 million) is allocated for purchasing of potatoes seeds (local variety), grain crops (Russian variety) and maize.
   3 Dec 2010  The income guarantee programme aiming to set the support producer prices for rice, maize and cassava, introduced in 2010, has been extended for 2011. Under the plan farmers receive the difference between the market price and reference price. The guarateed price for this year is THB 7.14 /kg for maize (from THB 7.1 last year)and THB 1.90 per kilo for cassava (THB 1.7 last year). For rice the reference price is announced every two weeks.
   14 Sep 2010  Guaranteed prices for rice for the 2010/2011 crop season have been fixed, varying from THB 9 500 (USD 308) to THB 15 300 (USD 497) per tonne depending on the variety of rice. The guarantee covers planting between 16 June 2010 and 28 February 2011 for southern Thailand, and between May and October 2010 for other areas. To be eligible for the price guarantee, farmers must harvest the crop between 16 September 2010 and 30 June 2011 in the south of the country, and between August 2010 and May 2011 elsewhere.
   27 Jul 2010  An amount of additional 457 000 tonnes of food grain, including 182 000 tonnes of rice and 274 000 tonnes of wheat, have been distributed to above poverty line (APS) families. Each APS family received at least 15 kilograms of grain per month. Rice was distributed at INR 11.85 (USD 0.25) per kilogram and wheat at INR 8.45 (USD 0.18) per kilogram, well below open market prices. Since May 2010, the Government allocated more than 3 million tonnes of food grain to targeted poor families.
   9 Mar 2010  The Government, under the new Direct Purchase Programme, has started to buy white rice directly from farmers at a benchmark price of THB 9 074 (USD 280.64), 2.5 percent higher than the market price. This price insurance scheme is financed through the Bank for Agriculture and Agricultural Cooperatives (BAAC) with a credit of THB 20 billion (USD 606 million) and target 3.7 million Thai households.
   27 Feb 2010  Government procurement of 290 000 tonnes of paddy rice from farmers in view of falling rice price. Purchases are arranged in various provinces: in Sukhothai, Phitsanulok, Suphan Buri, and Ayutthaya. The 28% paddy rice is bought at THB 7 900 (USD 241.86) per tonne while the 25% paddy is bought at THB 8 403 (USD 257.26) per tonne. The Government has planned to stop selling rice from state stockpile until June 2010.
   23 Feb 2010  An auction to sell 500 000 tonnes of rice to exporters from state reserves has been opened as part of a programme to sell up to 2 million tonnes by the end of April 2010, to reduce the storage and inventory management costs.
   9 Feb 2010  Approval of duty-free imports of broken rice under the ASEAN Free Trade Agreement only for the food-manufacturing industry and during specific periods (May to June and August to October.
   25 Feb 2011  The Government suspended the 130 percent import tariff on wheat and oat, until May 1 2011.
   1 Dec 2010  One million tonnes import quota for wheat at a zero tariff rate allowed to the Turkish Grain Board (TMO) until December 31, 2011.
United Arab Emirates
   10 Mar 2011  Government announced subsidies for rice and bread starting from April 201 in order to curb inflation.
Viet Nam
   19 Aug 2010  Minimum Export Prices (MEP) of 5% broken rice increased to USD 395 per tonne, and 25% broken rice to USD 360 per tonne. Later, in October, MEP was increased to USD 540 per tonne for 5% broken rice and to USD 480 per tonne for 25 % broken rice.
   15 Jul 2010  Interest free loans will be provided to domestic firms to buy one million tonnes of rice between 15 July and 15 September 2010 aiming to stabilize local market prices. Rice will be bought at VND 3 500 (USD 0.18) per kilogram.
   12 Jul 2010  Minimum Export Price for rice has been set at USD 300 per tonne, 14.28 percent lower than the one set in April 2010.
   8 Apr 2010  Export price of the 25 percent broken rice has been reduced to USD 350 per tonne to boost rice exports and to reduce domestic stocks.
   23 Mar 2010  The Vietnam Food Association has requested its members to stockpile 1.5 million tonnes of rice from the main winter-spring crop harvest (February-May) with the aim of stabilizing prices.



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