Rice traders demand guarantees of government subsidy

Importers in Guinea have demanded guarantees from the government that it will pay them a subsidy to sell rice cheaply to the public before they bring ashore thousands of tonnes of the foodstuff, a source close to the rice traders' association said on Monday. The government agreed with the Chamber of Commerce at the weekend that it would provide a subsidy of 11,000 Guinean francs (nearly $US4 at the parallel exchange rate) to rice importers so that traders could sell this staple food to the public at a fixed price of 40,000 francs ($14) per bag. Rice had been selling on the free market for up to $30 a bag -- more than many Guineans earn in a month. The government subsidy was designed to put a lid on price rises which led to gangs of angry youths looting trucks of rice in the capital Conakry over the past two weeks. However, sources close to leading Guinean importers told IRIN that these businessmen were refusing to unload 105,000 tonnes of rice on board ships in the port of Conakry until the government advanced them at least part of the promised subsidy. "There is no way we can bring this rice into town on our own and sell it at 40,000 francs per bag," one trader said. No incidents of looting or violence were reported over the weekend, but the atmosphere in Conakry remained tense and rice disappeared from view in most shops and market stalls. Panic seized motorists on Sunday as a rumour spread round town that the government was about to raise the price of petrol by 25 percent. Queues of vehicles lined up outside petrol stations which soon stopped selling fuel. Private bus and taxi operators hiked their fares by 20 percent in anticipation of the expected price rise. However, the increase failed to materialise and by Monday morning the situation had returned to normal.