Identifier
Created
Classification
Origin
09ASMARA41
2009-02-03 14:00:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Asmara
Cable title:  

GSE REVIVES ITS GRAIN REGULATION POLICIES

Tags:  EAGR PGOV SOCI ER 
pdf how-to read a cable
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UNCLAS ASMARA 000041 

SENSITIVE
SIPDIS

DEPT FOR AF/E AND NAIROBI FOR GEORGIANNA PLATT FOR USAID
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: EAGR PGOV SOCI ER
SUBJECT: GSE REVIVES ITS GRAIN REGULATION POLICIES

UNCLAS ASMARA 000041

SENSITIVE
SIPDIS

DEPT FOR AF/E AND NAIROBI FOR GEORGIANNA PLATT FOR USAID
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: N/A
TAGS: EAGR PGOV SOCI ER
SUBJECT: GSE REVIVES ITS GRAIN REGULATION POLICIES


1. (SBU) SUMMARY: In a recent interview, President Isaias
mentioned a defunct grain regulation policy that has taken
effect once more in Eritrea. The result is a visible
tightening on the selling of grain in the marketplace as well
as greater government control over the movement of grain
between cities. All this takes place amid one of the worst
harvests the country has seen in over twenty years. End
Summary.

BAN ON SELLING GRAIN
--------------


2. (SBU) President Isaias conducted a much-publicized
interview with the government-owned website, shabait.com,
January 10th where he referred to a prohibition of "selling
and exchanging of crops," supposedly in place since the
mid-90s. The reference to this statute led to a stir on
opposition websites, condemning the President's "cereal
proclamation." Market vendors responded by scaling back the
amount of grain on display to just a few kilos. But the
concern appears justified: reportedly some shops were closed
after government investigators deemed them to be selling
"contraband grainstuffs."


3. (SBU) According to one candid GSE official, the government
control of grain stems from an unwritten policy created
during the country's early years when President Isaias first
developed his aversion to foreign aid and belief it was a
threat to state power. To counter this perceived threat,
Isaias ordered the government to take charge of the selling
and distribution of grain. Although this policy seems to
have been enforced only sporadically through the years,
Isaias' recent mention of it and the market confiscations has
put grain vendors back on alert.


STATE CONTROL OF ALL FOOD
--------------


4. (SBU) Simultaneously, the GSE is now restricting movement
of food between cities. Checkpoints now involve agricultural
inspections to ensure that food is not being transported
between cities without GSE approval. Farmers also report
having entire crops taken by GSE authorities with little or
no compensation in return. In most instances the farmers are
given an "IOU" from the GSE.

FOOD PRODUCTION LOW
--------------


5. (SBU) According to a recent UNFAO report, Eritrea is
currently producing 30% of its food needs. In previous years
the country has produced 60% of its food needs, and has
supplemented the rest via imports. With restrictions in
place on food imports and humanitarian aid in the name of
GSE-styled "self-reliance" it will be impossible for the
government to meet this 70% food shortfall. The director of
one international NGO fears the situation is even worse than
the FAO report indicates: "From what I've seen in the field
the 30% is a large over-estimate." The NGO's local staff has
compared the current food shortage to the well-known droughts
of the mid-80s.
MCMULLEN