Demand for Grain in Tunisia

Introduction:

Mehdi Zerzeri sheds light on Tunisia’s grain import scenario, highlighting the country’s significant dependence on imports to meet its grain requirements.

Tunisia: The Million Ton Country:

• Tunisia is often referred to as the “million ton country” due to its import pattern: 1 million ton of wheat, 1 million ton of barley, and 1 million ton of corn.
• The local crop production is relatively small, around 600,000 tons, necessitating the import of almost 100% of barley, wheat, and corn.

Financial Challenges:

• The primary obstacle to fulfilling these import requirements is financing. The government is increasingly struggling to secure the necessary funds for imports.
• Recent tenders have been backed by international financial institutions like the European Development Bank and the European Investment Bank. However, finding such backing is becoming increasingly challenging.
• As a result, ships loaded with grain often wait outside ports, awaiting the opening of Letters of Credit (LCS).

A Glimpse of the Crisis:

• Tunisia has a mandatory security capacity for grain that should last three months. However, last week, the country ran out of wheat, leading to mills shutting down, even though vessels loaded with grain were waiting at the ports.
• The lack of foreign currency, both dollars and euros, is a significant challenge. Tunisia currently has reserves for only 80 days of imports, far below the government’s target of covering the country’s needs for three months.

Conclusion: Tunisia’s grain import scenario underscores the intricate relationship between agricultural needs and financial capabilities. While the country has the infrastructure to process grains, financial constraints are leading to significant disruptions, emphasizing the need for sustainable solutions.