VZCZCXYZ0007
RR RUEHWEB

DE RUEHAE #0041 0341400
ZNR UUUUU ZZH
R 031400Z FEB 09
FM AMEMBASSY ASMARA
TO RUEHC/SECSTATE WASHDC 0131
INFO RUCNIAD/IGAD COLLECTIVE
RUEKJCS/SECDEF WASHDC
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RUMICEA/JICCENT MACDILL AFB FL
RUEPADJ/CJTF-HOA J2X CAMP LEMONIER DJ
RUZEFAA/HQ USAFRICOM STUTTGART GE
RHRMDAB/COMUSNAVCENT

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