Traders up in arm as gov’t prevents food exports

AMMAN — The Ministry of Industry, Trade and Supply has decided to stop granting licenses for the export of produce and food commodities, sparking discontent among traders and exporters.

“In light of the coronavirus pandemic and the closure of regional and international markets, the ministry is currently studying the Kingdom’s current supply and storage of food and has thus decided to stop exports of food items until the assessment is done,” stated an official letter by the ministry on Monday.

The decision prohibits traders from exporting items produced in Jordan as well as items imported from another country, but are passing through Jordan for re-export.

The Minister of Industry, Trade and Supply Tariq Hamouri said on Wednesday that the decision, which has been in effect as of Monday, is “within the framework of the precautionary measures taken to preserve the Kingdom’s stock in light of the coronavirus crisis”.

He added: “The consequences that may result from the closures in Arab and global markets may possibly damage local commercial markets, and so, until the completion of an assessment evaluating the strategic stockpile of foodstuffs and raw materials used in its manufacture is completed, exports and re-exports are stopped.”

Khalil Haj Tawfeek, president of the Amman Chamber of Commerce, has contested the ministry’s decision.

He said in a statement on Wednesday “it is not easy for an exporter or food factory owner to lose a foreign market he has worked very hard to penetrate and make connections in.”

Haj Tawfeek added: “I have received a number of complaints from the Food Factory Owners Association claiming that they did not have enough raw materials to complete export orders they had in line, as they had been waiting for the material to arrive.”

The chamber’s president said the owners have not had the chance to complete the production of the orders and send them before the decision was implemented.

He added: “A realistic, on-ground study of such a decision should have been conducted. Only food items that the Kingdom does not have enough storage of for a certain period of time should have been banned from being exported, not all food items.”

Minister Hammouri reaffirmed the “abundance” of strategic stocks of various supplies in Jordan from locally produced and imported materials as the ministry “works in partnership and continuous coordination with the private sector to maintain the stock at the highest levels”.

However, Hammouri added that the assessment of the Kingdom’s strategic stocks is a “needed precautionary measure”.