The Egyptian government has decided to ban the export of rice beginning January 19 for an indefinite period following high domestic prices in the country with prices rising by almost 30 % recently.

The export ban was placed amid allegations that traders are speculating and storing rice awaiting further price increases. Egypt's government now hopes that the ban would prompt traders to sell the rice domestically and lower prices.

Egypt is a major exporter of medium- and short-grain rice, with annual exports of about 1 million MT, mostly to Middle Eastern countries.