Yemen Spends YR 231 Billion Yearly on Wheat: Domestic Production Drops

Yemenis expressed resentment over increasing bread loaf prices as Ministry of Trade and Industry issued a resolution ordering all bakeries to produce loaves of not less than 100 grams. The resolution also ordered bakers to sell bread in kilos and set the price at YR 180. 

However, bakers turned a deaf ear to the government's resolutions and paid no attention to the penalties imposed by these resolutions on those violating the weights. More people indicate that this is mainly caused by the lack of control by authorities. Further, citizens do not know what to do or how to react with such a non-commitment to resolutions.

Yemeni citizens do not face only the increase of bread prices but also the prices of wheat flour. According to sources, about 80 percent of Yemenis prepare bread at homes, which makes the financial burden easier for many. The increase of wheat and bread prices is accompanied by increase of other foodstuff against low incomes.

Expenses on wheat take up a big part of family's budget and YR 231.5 billion is paid for buying wheat and other derivatives, mostly in rural areas where expenditure on foodstuff mount to 178.5. This represents 15 percent of the general expenditure.

Meanwhile, the government has adopted no decisions or strategies to face the wave of price hikes especially of food commodities.

Citizens in general and farmer in particular harshly attack the Ministry of Agriculture, hinting it provides no aids or solutions to farmers while billions are wasted in what it names as programs for supporting farmers which has brought no tangible results. Farmers have been subjected to big losses over the last three months, mainly of vegetables and fruit.

According to several farmers, the state's policies are not effective as it does not help them to grow cereals and reclaim more lands amidst unprecedented increase of equipment and diesel prices. The total domestic production of cereals is just 7 percent while the remaining percentage swelling to 93 percent is covered by imports. The cereal imports were only 85 percent in 1988.

Minister of Agriculture stressed last week that his ministry has allocated YR 1.2 billion to support farmers and encourage them to grow wheat, hinting they bought 224 tractors and 300 harvesters to be distributed to farmers.

Yemen's cultivated lands reach 110,000 hectares, mostly dependent on seasonal rainfall that is fluctuating from one year to another. The domestic production of cereals reached YR 128,000 ton in 2007 and it imported YR 2.8 million ton during the same year.

Statistics indicate that Yemen faces shortage of water together with limited area of lands apt for agriculture mounting to 1.4 million hectares, about 3 percent of Yemen's total area.

Qat, narcotic leaves, takes up 156,000 hectares and uses up about 30 percent of water, something equal to 850 million m3 a year.

Over the last three months, wheat has hit record prices and a sack of wheat is now sold for YR 6,800. In return, a public servant employee whose monthly salary could not exceed YR 20,000 spends YR 15,000 on wheat, let alone other commodities.