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Policy measures taken by governments to reduce the impact of soaring prices
(as of 15 December 2008)

AFRICA

Algeria
    [May 08] Import of 300 000 tonnes of barley to be distributed at subsidised price to the cattle breeders. Subsides policies have put considerable strain on public finances: the bread subsidy system is estimated to cost the Government about USD 50 million each month.
    [May 08] Government allowed an increase of meat import until the month of August
    [Jun 08] Increased durum wheat purchase price to DZD 4 500 dinars per quintal from DZD 2 100; soft wheat to DZD 3 500 per quintal from DZD 1 950; barley to DZD 2 500 per quintal from DZD 1 500. The sale price to millers will be DZD 2 280 per quintal for durum, DZD 1 285 per quintal for soft wheat and DZD 1 550 per quintal for barley.
    [Aug 08] In July 2008 the Ministry of Agriculture formed the Syrpalac, a body of which the mandate is to regulate the supply of key food commodities (staples). The Syrpalac has procured 100 000 tonnes of potatoes.
    [Sep 08] Allocation to the agriculture sector has been increased – USD 3.4 billion will be injected to boost production, this will be supplemented by USD 6.36 billion allocation for irrigation construction and/or rehabilitation
    [Oct 08] Fertilizers and pesticides were exempted from VAT and cereal production was exempted from all taxes
    [Oct 08] Farmers were given access to zero-interest rate credit to purchase agricultural inputs through the National Bank of Algeria, the Agricultural Bank.
Angola
    [Sep 08] The Government of Angola, through the Ministry of Agriculture and Rural Development, has been distributing agricultural inputs (seeds, fertilizer, tools and tractors) to farmer associations and small holder farmers. The Government intends to double the area under cultivation and increase the total food production to mitigate persistent food insecurity in some urban and rural parts of the country. In November, agricultural inputs ditribution continue.
Benin
    [Apr 08] Price control (imposed from December) was extended on April 1st for other 3 months.
    [May 08] Price controls system, homologation of the prices for the new imported and stocked products (retailed and stock prices)
    [May 08] Allocation of an additional fund for 1 000 tonnes maize stock
    [May 08] Emergency programme for the immediate production out of the season and promotion of the short-term cycle cultivation (rice, maize)
    [May 08] Since April the Government has removed tax on basic imported staple products such as wheat, maize, rice, pasta and oil.
    [May 08] Land upgrade and land settlement measures in the Ouémé, Couffo, Mono, Niger and Pendjari valleys
    [May 08] Set up of a food stock (staople food) from the surplus production with the allocation of 480 XOF
Burkina Faso
    [Feb 08] Reduction in customs on basic foodstuffs.
    [May 08] Increased access to fertilizers through measures to reduce their cost
    [May 08] Burkina Faso has declared its intention of self-sufficiency
    [May 08] Negotiation with the local importers to contain prices
    [May 08] Government with the support of WB signed a convention to purchase 6000 tonnes of seeds
    [May 08] Removed VAT on local products (mainly rice)
    [May 08] A minimum price for rice is guaranteed to secure and encourage local producers during next season
Cameroon
    [May 08] Government reduced import taxes on commodities such as rice, wheat flour, salt and fresh fish and suspended custom duties on cooking oil and fuel
    [May 08] Banned re exportation of subsidized commodities
    [May 08] In Cameroon a monitoring unit has been set up to stabilize retail prices of commodities such as palm oil, soap and milk.
Cape Verde
    [May 08] Prevention of hoarding attitudes and attempts to excessive pricing
    [May 08] Review of customs tariffs on food products
    [May 08] Control of supply of cereals to more remote islands
Central African Republic
    [Jul 08] Production in the peri-urban area of Bangui of one day spring chicken through eggs imported abroad to distribute to the affected urban population. Allocated 5 millions de Fcfa by the Treasury Minister
Congo
    [May 08] Reduction from 18 to 5 percent in the rate of VAT levied on a range of basic imported foodstuffs and other goods deemed essential. These included staples such as wheat, sugar, rice, salted fish, baby food and household products such as soap.
Côte d'Ivoire
    [May 08] Ministry of commerce put in place coercitive measures for the respect of the prices established by the government
    [May 08] Reduction for 3 months TVA on agricultural products and other products (rice, vegetable oil’s, sugar, soap)
    [May 08] Reduction of tax imports (rice)
Democratic Republic of the Congo
    [May 08] Reduction tax imports
Djibouti
    [May 08] Set up a system to control prices/Price pubblication
    [May 08] Elimination of the domestic consumption taxes on five basic food items predominantly consumed by the poor (rice, sugar, cooking oil, wheat flour and powder milk).
    [Nov 08] Tax benefits for domestic and foreign investment in agriculture
Egypt
    [Apr 08] Ban on rice exports from April to October.
    [May 08] 30 per cent raise in salaries for employees starting this month May 2008
    [May 08] Increase the budget for bread subsidies
    [May 08] Egypt has opened its ration card system until June 30 and doubled the amount of rice that card holders receive. Egypt had not added to the ration card registry since 1988. A total of 55 million people out of Egypt's population of 75 million are covered by the system. The card holders are allowed to buy 2 kg of rice (double the amount previously allowed) in addition to 2 kg of sugar, 1.5 kg of oil, and 50 grams of tea per person every month for EGP 15.
    [Jun 08] Extension of rice export ban until April 2009.
    [Sep 08] In 2007/08, total expenditure on subsidies was around $17 Billion, 42% higher than budgeted – more than 2/3rd of this amount went for energy subsidies. In 2008/09, due to a 30 percent increase in public-sector wages and still rising commodity prices, subsidy allocation is likely to increase by 25 percent over 2007/08.
    [Sep 08] Partial reduction of subsidies to the fuel prices: additional subsidies have to be diverted to the food consumption
    [Sep 08] Cash transfer to vulnerable groups.
Eritrea
    [May 08] Food and oil subsidies
Ethiopia
    [Mar 08] Value-added and turnover taxes removed on food grains and flour.
    [May 08] Since March subsidy on food commodities for the urban poor. In May the government has imported 150 000 tonnes of wheat for state subsidized distribution scheme.
    [May 08] Major cereals export banned
Gambia
    [May 08] Suspension of the VAT on staple food prices (cooking oil, flour, fish, milk)
    [May 08] Suspenction of the imported taxes
Ghana
    [May 08] Eliminated all import duties on rice, wheat, yellow corn and vegetable oil.
    [May 08] Excise duties and tax on oil and fuel are removed for the country's fishermen and subsidies on fertilizer and free tractors are to be available for farmers.
Guinea
    [May 08] Temporary suspension of taxes on imported staple products
    [May 08] Since April Governement banned export/re-export of agricultural products
Kenya
    [May 08] Up to 270 000 tonnes of duty free maize imports from South Africa to be allowed.
    [May 08] Implementation of an accelerated input programme using cash vouchers (continuation of an existing programme)
    [Jun 08] Sales taxes on rice and bread removed
    [Jun 08] Fertilizer price was made cheaper by the National Cereals and Produce Board.
    [Jun 08] Wheat import tax reduced from 35 percent to 10 percent
    [Oct 08] Maize exports banned
Liberia
    [May 08] Safety nets interventions (food for work and cash for work) were reinforced
    [May 08] Supply of inputs for the current planting season (mainly fertilizers and pest management inputs)
    [May 08] Rice import tax removed (USD 2 per bag)
Libyan Arab Jamahiriya
    [May 08]  Monitor international prices of cereals
    [May 08]  Measures to build-up the strategic food reserve (mainly wheat)
    [May 08] Increase public wages
    [May 08] Exempt food imports from customs
    [May 08] Subsidy policy
Madagascar
    [Jul 08] Import duties on oil, flour, rice reduced by 5 to 20%
    [Jul 08] Transport subsidies
Malawi
    [Apr 08] Maize exports were banned except for the residual contract amounts for Zimbawe
    [Aug 08] The Government announced a ban on maize private trading, making ADMAC (Agriculture Development and Marketing Corporation) the sole trader in the country. Governemnt has fixed the buying and selling prices of maize through ADMAC at MWK45 (USD 0.31) and MWK52 (USD 0.37) per kg.
    [Nov 08] Subsidies for agricultural inputs to be continued en 2008/2009 agricultural season
Mauritania
    [Apr 08] Cereals import taxes reduced and rice import taxes suspended
    [Apr 08] Creation of cereal banks across the country.
    [May 08] The Government attempted to replenish the National Food Strategic reserves (NFSR) allocating (for the year 2008) resources to buy an equivalent of 4 500 tonnes of cereals, which represent less then 1 percent of the annual consumption of the country.
    [May 08] Design and implementation of a Special Plan of Intervention and support to the forthcoming agricultural campaign (distribution of inputs, credits to farmers)
    [Sep 08] Agricultural credits increased from 3.3 million Euro to ten; loans of 162 Euro per hectare available to small farms repayment over 3 years.
Morocco
    [Aug 08] Price subsidies (cereal, sugar and milk)
    [Aug 08] Reduced tariffs on key food import (wheat, animal compound foodstuffs, milk powder) after a reduction, at the beginning of the year, of wheat import tariff from 130 to 2.5 percent.
    [Oct 08] New legislative and institutional mechanisms to strenghten purchasing power of the population and Government price control
Mozambique
    [Aug 08] Agreement with Vietnam to import 400000 tonnes of rice each year for next three years
Namibia
    [Aug 08] Namibia Government announced a decision to scrap the value added tax (15 percent) on selected food items (bread, cakes, cooking oil, dry beans, etc) in order to relieve population of the soaring food prices influenced by international markets
Niger
    [Mar 08] Rice import tax suspended for 3 months.
    [Oct 08] Government's food stocks increased through the purchase of local products
    [Oct 08] Government's campaign for cowpea marketing
Nigeria
    [May 08] Set of price information system to publish weekly food commodity prices for information and close monitoring
    [May 08] Ensuring self sufficiency for the following commodities: rice, cassava, wheat, tomatoes, cotton, livestock and fisheries within a period of five years.
    [May 08] Procurement of 650 000 tonnes of fertilizer for the coming planting season to ensure reasonable harvest next year/Promoting the establishment of fertilizer manufacturing plants and expansion of national gas grid to afford locating the plants close to the agricultural farms
    [May 08] The Government has released so far 65 000 metric tonnes assorted grains to the public sector from the Federal Government’s National
    [May 08] Guaranteed minimum price system for the purchase of excess production through licensed buying agents
    [May 08] Rice import tax lowered from 100 percent to 2.7 percent
    [Jun 08] Allocation of special found (N 80 billion) for rice importation: 500,000 metric tonnes of rice will be imported to fight against food shortages
    [Jun 08] In May 2008 Nigeria and South Korea signed an agreement to set up a rice processing mill in a bid to boost production and fight spiralling food prices
Rwanda
    [May 08] Elimination of the intemediaries in the local food commercialisation
    [May 08] Daily information on the agricultural products/Elimination of the intemediaries in the local food commercialisation
    [May 08] Dicrease of the taxes on the food products imported
Senegal
    [Apr 08] Wheat flour subsidized at 40 percent.
    [Apr 08] Imposed food price controls.
    [Apr 08] Waived import tariffs on wheat.
    [May 08] Government has released so far 65,000 metric tons assorted grains to the public sector from the Federal Government’s National
    [May 08] Guaranteed minimum price system for the purchase of excess production through licensed buying agents
    [May 08] Rice distribution throughout the country, for an estimated value of nearly USD 24 million
    [May 08] VAT reduction on different commodities
    [May 08] Reduction of the taxes on the salaries
    [May 08] The GoS has launched the Grand Agricultural Offensive for Food and Abundance (Grand Offensive Agricole pour Nourriture et l'Abondance: GOANA) to increase agricultural production and productivity through investment in the sector.
    [Nov 08] The Government has lifted the subsidy on imported rice
Seychelles
    [Jul 08] Revision of the Agriculture and Fisheries Incentives Act 2005 with a view to provide investors in agriculture with concessions on imported agricultural inputs
Sierra Leone
    [May 08] Sierra Leone has granted permission to purchase some 40 000 bags of rice (some 2 000 tonnes) under a partially lifted ban by India. Following a historic Indian-African summit on 8-9 April, India decided to accommodate the African countries in most need of rice supplies.
South Africa
    [Apr 08] Increased allowances to poor, old-age and disabled. In August the Government announced an increase in the income threshold of people qualifying for social grants. This is expected to benefit additional one million urban and rural poor.
Sudan
    [May 08] The Government set up a system to monitor prices
    [May 08] The Government suspended VAT on wheat flour and bread and reduced taxes on foodgrains.
Togo
    [May 08] Injection on the market of 7000 t of cereal to decrease the prices
    [May 08] Control of the price of power, water and bread. 17,5 billions to support the price of fuel.
Tunisia
    [Aug 08] Exceptional grants maintenance for harvest until August 31st: up to 15 dinars per hard wheat quintal and 10 dinars per soft wheat and barley quintal
    [Sep 08] Hard wheat producer price will be increased to 43 dinars per quintal, soft wheat to 35 dinars per quintal and barley to 30 dinars per quintal
    [Sep 08] Reduction of the seasonal credit interest rate from 8.5 percent to 6.5 percent for the period of 2008-2011 by the National Agriculture Bank. For a period of 3 years the state will be in charge of the insurance's costs of the seasonal loans
    [Sep 08] Exemption of the rent activities of the agricultural lands (register cost, taxes on revenue)
    [Sep 08] Production subsidies to soft wheat and barley (USD 80 per tonne) and hard wheat (USD 125 per tonne) will be maintained until August 2009
    [Sep 08] 26 400 tonnes of improved seeds provided at subsidized cost (between USD to 200 per tonne)
    [Oct 08] Irrigated areas will be increased from 17 000 ha to 93 000 ha
    [Oct 08] 264 000 quintals of seeds distributed at subsidized price (8-24 dinars per quintal)
    [Oct 08] Deadline for request debts rescheduling extended and ceiling of seasonal credits increased of 10 percent. Aid in kind provided to 25 000 small farmers.
Uganda
    [Jun 08] East African finance ministers removed taxes on some basic commodities as part of budget proposals aimed at helping citizens cope with rising food prices
United Republic of Tanzania
    [May 08] Distribution of subsidized food provided by the Government to the targeted 398 504 people identified during the Rapid Vulnerability Assessments of September 2007 and February/March 2008. As of 28th April, 2008, the Government had distributed a total of 1 083.75 tonnes of maize and 193.66 tonnes of sorghum sold at a subsidized price of Tsh 50 per kilogramme
    [May 08] Export ban on maize, established in January, continues
    [May 08] Removed duty on cereals imports/Duty free import on maize currently ending on 30th May, 2008
    [May 08] Fertilizers subsidies.
    [Jun 08] East African finance ministers on Thursday removed taxes on some basic commodities as part of budget proposals aimed at helping citizens cope with rising food prices
Zambia
    [Mar 08] Maize export banned
    [Jul 08] Raised farm price of white maize to ZMK 55000 (USD 14) per 50 kg bag from ZMK 45000 (USD 8).
    [Sep 08] Subsidies for agricultural inputs increased to cover 200 000 beneficiearies this year from 120 000 the previous year.
    [Sep 08] The export ban on maize, started in March, continues
    [Sep 08] Increased supply of fertiliser and seeds to vulnerable farmers from 120 000 to 200 000 beneficiaries.
Zimbabwe
    [Aug 08] The Government waived import duty on rice, flour and other selected basic food and non-food products until the end of 2008. This is expected to increase cross-border imports at individual and petty trader level
    [Aug 08] The Government lifted ban on some NGOs. This will allow WFP to scale up its food distributions as its NGOs partners now can partecipate in aid distribution.