Syria turns to imported wheat amid smallest harvest in years

Syria resorted to the international wheat market last week for the first time in 15 years to compensate for one of its smallest harvests on record.

A commodities official told newswire Reuters the harvest would fall to around two million tonnes this year compared with an earlier estimate of three million tonnes and 4.1 million tonnes last year. It would be even less than the 2.5 million tonnes produced in 1999.

As a result, the government's cereal division has issued a tender to buy 120,000 tonnes of soft wheat of any origin.

Drought and unstable weather hit Syria's harvests in the last two years, undermining the country's role as a food and farm commodities player in the Middle East.

Syria touts food security as a major achievement and the agriculture minister told government newspapers that Syria's strategic wheat stocks would last until 2010.

But the country's new import needs underline the economic challenges faced by the Baathist government, which has been under sanctions from Washington since 2004 for supporting anti-US groups in the Middle East.

The sanctions, which were expanded this year, do not ban US agricultural exports to Syria.

The tender document specified delivery into Syria's Tartous or Latakia ports on a cost insurance freight basis (CIF) within a month of opening a letter of credit.

Traders said Syria needed to inspire confidence among international suppliers about its procurement process.

"The Syrians have specific regulations that could discourage some from taking part in the tender.

"There are also questions whether they've solved problems in their silos," a trader said.