Algeria's Cereal Harvest Set to Fall 35-40% this Year Due to Drought

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
TT

Algeria's Cereal Harvest Set to Fall 35-40% this Year Due to Drought

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)
Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat. (Reuters)

Grain importer Algeria expects its cereal production for 2020 to fall 35-40% from last year’s 5 million tons because of drought, the head of its farmers’ union told Reuters.

Algeria has in recent years harvested the bulk of its needs for durum wheat and barley while depending on imports of soft wheat, in large part from France.

“Output will drop by 35-40% due to drought,” the farmers’ union chief Mohamed Alioui said. “Drought has hit all provinces in the east and west, mainly those known for high production.”

Movement restrictions linked to the global pandemic contributed to production falling across the country, forcing farmers to revise down expectations, he said.

Lower output means the government will continue to turn to international markets to supply its 45 million people, he said.

Algeria spends around $1.3 billion annually on cereal imports, and wheat, considered a strategic crop, is subsidized.

The harvest is coming to an end in the southern provinces and will start in the north in the next few days, continuing until the end of August.

“We are disappointed. But we hope there will be abundant rain next season,” said farmer Ali Bakali as he visited his two-hectare wheat farm.

Drought hit most crops with farmers waiting for the government to make good on promises to improve irrigation systems.

“We have no other solutions but to find the solutions that allow us to cope with the drought and its impact on agriculture,” Agriculture Minister Abdelhamid Hamdani said last month as reported by state media.

Only about 600,000 hectares of the 1.4 million that are irrigated are planted with cereals.

The government said it will offer incentives, including removing some administrative procedures, for farmers to grow cereals.

President Abdelmadjid Tebboune on Sunday called for a “revolution” in the production of grains and seeds, urging his government to increase durum wheat output and cut soft wheat imports by adopting modern methods and involving more agronomic engineers.



IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
TT

IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.