On June 5, 2018, Egypt’s government announced a decision to import rice (milled, paddy, cargo) to help meet market demand. Through this measure the government seeks to increase supply and avoid a potential price shock to consumers. FAS Cairo expects that the Ministry of Water Resources and Irrigation’s January 2018 measure reducing cultivated areas may have led to grain hoarding. This has resulted in a decrease in the volume of rice being offered to the country’s subsidy procurement system. Post anticipates a shortfall in supply in marketing year (MY) 2019/20. FAS Cairo believes that U.S.- origin paddy rice could be competitive for Egyptian millers.