Jordan: Government raises barley prices by JD20 per tonne

Jordan’s government raised on September, 15 barley prices in the local market from JD160 per tonne to JD180 per tonne, effective immediately, against the objections of livestock owners, Jordan Times reports.

Minister of Industry and Trade Amer Hadidi and Minister of Agriculture Mazen Khasawneh announced the decision at a meeting at the Ministry of Agriculture headquarters with sector stakeholders, who walked out of the meeting after expressing their disapproval.

The decision came after barley prices rose on international markets by 50 per cent to $300 or JD211 per tonne, Hadidi said, adding that in light of the price spike, the government will resume subsidising barley by JD31 per tonne, at a total cost of JD2.5 million per month.

"For years, barley prices used to be subsidised by the government to ensure that breeders could buy it at reasonable prices, until April of last year when the state subsidy was cancelled," he explained, stressing that the government chose not to raise local prices to parity with international levels as livestock owners would struggle to bear such high costs.

Hadidi added that the increase in barley prices is intended to prevent illegal practices in the local market.

According to a quota set by the Ministry of Industry and Trade, livestock owners can buy up to 20 kilogrammes of barley per month for each head of livestock they own.

Hadidi indicated that due to recent rumours of an impending price rise, demand on barley during this month rose significantly from 1,700 tonnes per day to over 3,000 tonnes a day.

Khasawneh said the government had hoped to avoid increasing prices, but cannot afford to add more financial burden to the already strained state budget.

The officials cited recent statistics showing that there are around 2.5 million heads of cattle and sheep in the country, while 27,000 livestock owners are registered at the agriculture ministry.

Sector representatives stressed at the meeting that farmers and livestock breeders are "completely against" the decision.

Mahmoud Oran, president of the Jordan Farmers Association, said the decision will hurt livestock breeders, adding that the agriculture ministry should stand up for the Kingdom's small farmers and herders.

"The government should distinguish between livestock breeders and livestock traders," he added, predicting a sharp rise in sheep prices on the local market as a result of the decision.

Zaal Kawalit, a livestock owner from Karak, warned that the rise in barley prices will put many breeders out of business and have negative social consequences.

"Is the government unable to afford JD2.5 million a month?" he asked, saying that many breeders will begin feeding their cattle bread because it will be more affordable than buying fodder.

22 September, 2010