Historic drought, wheat shortage to test Syria's new leadership
DUBAI (Reuters) -Syria faces a potential food crisis after the worst drought in 36 years slashed wheat production by around 40%, squeezing the country's cash-strapped government, which has been unable to secure large-scale purchases.
Around three million Syrians could face severe hunger, the United Nations' World Food Programme told Reuters in written answers to questions, without giving a timeframe.
Over half of the population of about 25.6 million is currently food insecure, it added.
In a June report, the U.N.'s Food and Agriculture Organization estimated that Syria faced a wheat shortfall of 2.73 million metric tons this year, or enough to feed around 16 million people for a year.
The situation poses a challenge to President Ahmed al-Sharaa, whose government is seeking to rebuild Syria after a 14-year civil war that saw the toppling of long-time ruler Bashar al-Assad in December.
Wheat is Syria's most important crop and supports a state-subsidised bread programme - a vital part of everyday life.
Yet Sharaa's government has been slow to mobilise international support for big grain purchases.
Reuters spoke to a Syrian official, three traders, three aid workers and two industry sources with direct knowledge of wheat procurement efforts, who said more imports and financing were needed to alleviate the impending shortage.
The new government has only purchased 373,500 tons of wheat from local farmers this season, the Syrian government official said, speaking on condition of anonymity. That is around half of last year's volume.
The government needs to import around 2.55 million tons this year, the source added.
So far, however, Damascus has not announced any major wheat import deals and is relying on small private shipments amounting to around 200,000 tons in total through direct contracts with local importers, the two industry sources said, also declining to be named due to the sensitivity of the matter.
The ministry of information did not respond to a request for comment.
"Half of the population is threatened to suffer from the drought, especially when it comes to the availability of bread, which is the most important food during the crisis," Toni Ettel, FAO's representative in Syria, told Reuters.
So far, Syria has received only limited emergency aid, including 220,000 tons of wheat from Iraq and 500 tons of flour from Ukraine.
'THE WORST YEAR'
While Syria consumes around four million tons of wheat annually, domestic production is expected to fall to around 1.2 million tons this year, down 40% from last year, according to FAO figures.
"This has been the worst year ever since I started farming," said Nazih Altarsha, whose family has owned six hectares of land in Homs governorate since 1960.
Abbas Othman, a wheat farmer from Qamishli, part of Syria's breadbasket region in northeast Hasaka province, didn't harvest a single grain.
"We planted 100 donums (six hectares) and we harvested nothing," he told Reuters.
Only 40% of farmland was cultivated this season, much of which has now been ruined, particularly in key food-producing areas like Hassakeh, Aleppo, and Homs, the FAO said.
Local farmers were encouraged to sell what they salvaged from their crop to the government at $450 a ton, around $200 per ton above the market price as an incentive, the official source said.
"In a good year I can sell the government around 25 tons from my six hectares but this year I only managed to sell eight tons," said Altarsha, the Homs farmer.
"The rest I had to just feed to my livestock as it wasn't suitable for human consumption," he said, hoping for better rains in December when the new planting season begins.
Before the civil war, Syria produced up to four million tons of wheat in good years and exported around one million of that.
U.S. POLICY SHIFTIn a major U.S. policy shift in May, President Donald Trump said he would lift sanctions on Syria that risked holding back its economic recovery.
The U.S. Department of Agriculture estimates Syria will need to import a record 2.15 million tons of wheat in 2025/26, up 53% from last year, according to the department's database.
Still, Syria's main grain buying agency is yet to announce a new purchasing strategy. The agency did not respond to Reuters questions over the issue.
Wheat imports also face payment delays due to financial difficulties despite the lifting of sanctions, according to two sources with direct knowledge of the matter.
Food was not restricted by Western sanctions on Assad's Syria, but banking restrictions and asset freezes made it difficult for most trading houses to do business with Damascus.
Russia, the world's largest wheat exporter and a staunch supporter of Assad, had been a steady supplier but to a large extent has suspended supplies since December over payment delays and uncertainty about the new government, sources told Reuters following Assad's ouster.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
39 minutes ago
- Yahoo
Trading Day: AI fatigue, policy intrigue
By Jamie McGeever ORLANDO, Florida (Reuters) -TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist Gnawing doubts about the frenzy around artificial intelligence weighed on tech shares again on Wednesday, pushing Wall Street into the red as investors cast a nervous eye toward a key speech from Fed Chair Jerome Powell on Friday. More on that below. In my column today, I look ahead to Powell's eighth and final Jackson Hole speech. If market moves following his previous seven are any guide, investors should be in for a bumpy ride. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. Trump calls on Fed Governor Cook to resign 2. Fed's dilemma between AI and housing: Mike Dolan 3. Big investors ditch tech ahead of expected Septemberstocks slump 4. US tech-stock stumble shows vulnerability in AI 5. UK inflation heat puts Bank of England back in thespotlight Today's Key Market Moves * STOCKS: Wall Street in the red, again led by techselloff. Nasdaq sheds 0.7%. China closes at a 10-year high,Europe gains too, but benchmark EM falls. * SHARES/SECTORS: Target slides 6% after firm announcesinsider Michael Fiddelke as new CEO. Intel falls 7% and othertech firms fall on news the government is eyeing stakes inchipmakers. * FX: New Zealand dollar falls 1% after dovish RBNZ ratecut, bucking broader trend of U.S. dollar weakness. * BONDS: U.S. yields down ever so slightly, recoveringafter the Fed minutes. The 20-year auction was mixed. * COMMODITIES: Safety bid lifts gold 1%, oil reboundsaround 1.5% on U.S. inventory drawdown. Today's Talking Points: * Trump interference. Investors are increasingly concerned about the involvement - or interference - from President Donald Trump and his administration in many aspects of the economy, private sector business, and independent policymaking. Trump on Wednesday called for Fed Governor Lisa Cook to resign over mortgage allegations, which could pave the way for another Trump appointee at the Fed inclined to lower interest rates. Commerce Secretary Howard Lutnick, meanwhile, is said to be looking into the government taking equity stakes in Intel and other chipmakers in exchange for grants under the CHIPS Act. This comes on the heels of Trump's recent sideswipe at Goldman Sachs's CEO and chief U.S. economist, criticism of JPMorgan Chase and Bank of America, his firing of a senior statistics official, and months of verbal attacks on Powell for not cutting rates. * Tech fatigue. After leading Wall Street's charge this year to new peaks, U.S. tech shares are now losing steam and dragging broader indexes lower. Whether that's simply rotation and diversification, unease over the megacap concentration, or doubts about the huge AI spend, air is coming out of the tech balloon. The S&P 500 tech sector is down nearly 5% in the last five trading days. But a bit of perspective is required - the sector rallied 60% between April 7 and August 13. * Fed minutes. With just two days to go until Powell's last Jackson Hole speech, investors on Wednesday had the minutes of the Fed's July 29-30 policy meeting to pore over. The minutes appear to show that the two policymakers who dissented against the central bank decision to leave rates unchanged appear not to have been joined by others in voicing support for lowering rates at that meeting. "Almost all participants viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50% at this meeting," the minutes read. Maybe the bar to cutting rates is higher than thought? But bear in mind, the weak July payrolls data were released two days after that decision. Jackson Hole speech could pack a punch Financial markets are taking in a collective breath ahead of Powell's eighth and final keynote Jackson Hole speech as Federal Reserve chair. If the moves following his last seven are any guide, investors should buckle up for a bumpy ride. Fed-watchers will be focused squarely on whether Powell signals that he's willing to cut interest rates at the central bank's September 16-17 meeting. His public comments in recent months have been relatively hawkish, but those were all before the release of the weak July employment figures that fired up easing expectations. Rates futures traders are pricing in an 85% probability of a quarter-point cut next month, with another 25 basis points of easing expected by year's end. Powell's words on Friday could provide significant clarity about whether these positions are "in the money" or not. Given that traders are betting so heavily on an imminent move, the "pain trade" will be if Powell holds the line that policymakers need to see more incoming data before resuming the easing cycle put on hold in December. Investors have reason to be cautious. History shows Powell's Jackson Hole speeches tend to move markets a lot, especially the bond market. And even though Powell is often considered a policy dove at heart, his Jackson Hole set-piece speeches have usually pushed yields higher, not lower. WATCH BOND YIELDS In the month following each of Powell's last seven Jackson Hole speeches, the 10-year Treasury yield has risen by an average of 21 bps, according to Reuters calculations. The dollar has risen 1.4% and the S&P 500 has fallen nearly 2%, on average, over the same period. Stretching that out, the S&P 500 has risen an average of 2.3% between the late-August speech and year-end, the dollar has gained 0.4%, while the 10-year yield has climbed 27 basis points on average. But these averages mask some much bigger moves, especially in the month after the central bank jamboree in Wyoming. The stand-out example is 2022, when Powell, in his Monetary Policy and Price Stability speech, invoked former Fed Chair Paul Volcker, warning of the "pain" that households and businesses were likely to face from the tight policy needed to slay inflation. In the following month, the S&P 500 tanked 12%, the dollar rallied 5%, and the 10-year Treasury yield soared 75 bps. Bond yields climbed at least 20 bps in the month following three other Powell Jackson Hole speeches, in 2018, 2021, and 2023, the latter being another where Powell signaled a readiness to keep rates higher for longer. KEY CONSIDERATIONS Inflation today is not as lofty as it was two years ago, but, sitting around 1 percentage point above the Fed's 2% goal, it is higher than Powell would like. Meanwhile, on the other side of the Fed's dual mandate, unemployment remains at a historical low of 4.2%. This year's theme at Jackson Hole is "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy." Powell has stated that the unemployment rate is the best measure of the labor market. But that does not mean today's low unemployment rate will automatically lead to a hawkish speech - history shows that when unemployment starts to rise, it can move quickly, leaving the Fed woefully behind the curve. Markets are probably prepared for some large price swings, whichever way Powell leans. THE LAST TIME It's also likely that Powell will use the platform to defend his tenure, just like his predecessors: Alan Greenspan in 2005, Ben Bernanke in 2012, and Janet Yellen in 2017. Given the unprecedented public pressure Trump has placed on Powell to cut interest rates this year, why would the Fed chair not seize this opportunity to have his say? "He may offer some soft guidance that rates may move lower at a coming meeting. But this is his last speech at Jackson Hole. He may never again have a platform this influential to offer his view of how his history should be written," economists at UBS wrote on Friday. Will he sign off with a bang? Markets are locked and loaded. What could move markets tomorrow? * Australia, Japan, India PMIs (August, flash) * South Korea producer inflation (July) * UK public finances (July) * UK, euro zone PMIs (August, flash) * Canada producer inflation (July) * U.S. weekly jobless claims * U.S. Philly Fed business index (August) * U.S. PMI (August) * U.S. $8 billion auction of 30-year TIPS * U.S. earnings - Walmart * Atlanta Fed President Raphael Bostic speaks Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Jamie McGeever; Editing by Rod Nickel) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


New York Post
an hour ago
- New York Post
Official say US military raid in Syria killed country's ISIS leader-in-waiting
The U.S. military carried out a raid in northern Syria on Tuesday, killing a senior ISIS figure who had been poised to become the group's next leader in the country, a U.S. official told Fox News. A key ISIS financial official was also killed in the operation, the official said, noting that both men had been actively planning attacks in Syria and Iraq. No U.S. forces were injured. Advertisement On the background of a U.S. official to Fox News, the raid was described as a 'successful operation' targeting a senior ISIS member assessed to be a strong candidate to assume the role of ISIS Syria Emir, a position that would have posed a direct threat to U.S. and Coalition forces as well as the new Syrian government. No civilians were injured or killed, and there were no injuries to U.S. or Coalition forces. The operation is part of continued U.S. counterterrorism efforts in the region following ISIS's territorial defeat in Syria and Iraq in 2019. 4 Islamic State/Iraq/Syria: A masked Islamic State soldier poses holding the ISIL banner somewhere in the deserts of Iraq or Syria. Pictures from History/Universal Images Group via Getty Images Advertisement 4 Emergency services work at the scene of a suicide bombing at Mar Elias Church on the outskirts of Damascus, Syria, on June 22 2025. MOHAMMED AL RIFAI/EPA-EFE/Shutterstock 4 A grafitti on a wall in Tadamon that depicts the flag of the ISIS. Middle East Images/AFP via Getty Images 4 A clergyman walks among debris at the scene of a suicide bombing at Mar Elias Church on the outskirts of Damascus, Syria, 22 June 2025. MOHAMMED AL RIFAI/EPA-EFE/Shutterstock Advertisement 'We will continue to pursue ISIS terrorists with unwavering determination throughout the region,' the official added, stressing that the U.S. and its partners remain committed to ensuring the lasting defeat of ISIS and the protection of the homeland. The State Department did not immediately respond to Fox News' request for comment. This is a developing story. Please check back for updates.


New York Post
an hour ago
- New York Post
Bed Bath & Beyond says it won't open stores in California: ‘Overregulated, expensive and risky'
Bed Bath & Beyond on Wednesday said it will not open stores or operate in California as it issued a scathing rebuke of the state's intense lefty policies. Marcus Lemonis, executive chairman of Bed Bath & Beyond, said the decision 'isn't about politics – it's about reality.' 'California has created one of the most overregulated, expensive and risky environments for businesses in America,' he said in a press release. 3 Bed Bath & Beyond said it will not open stores or operate in California. REUTERS 'The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.' The beleaguered chain has launched a return to retail after filing for bankruptcy and closing hundreds of stores just two years ago. It cited a commitment to shareholders and 'common sense' business practices as its reasoning for offering only e-commerce and delivery services in California. Lemonis argued that California's strict regulations would force Bed Bath & Beyond to inflate prices in brick-and-mortar stores and make it impossible for them to guarantee long-term employment. In particular, he took aim at intense worker protections like California's minimum wage hike – as high as $20 for the fast-food industry – arguing that businesses can't handle the costs. A spokesperson for California Gov. Gavin Newsom clapped back: 'Like most Americans, we thought Bed Bath & Beyond no longer existed.' 3 California Gov. Gavin Newsom speaking at an event last week. REUTERS 'We wish them well in their efforts to become relevant again as they try to open a second store,' the spokesperson told The Post in a statement. The brand, which is now owned by Beyond Inc., opened its first new location earlier this month in Nashville. Earlier this year, Kirkland's Inc. finalized a $25 million investment from Beyond, which also owns Overstock, Zulily and BuyBuy Baby. As part of the deal, Kirkland's has become the exclusive brick-and-mortar operator and licensee for new, smaller-format Bed Bath & Beyond stores. 3 Shoppers browse in a Bed Bath & Beyond store in early 2023. John Roca The company plans to open five of these 15,000-square-foot 'neighborhood' stores this year. 'The key to retail is efficiency in assortment, space management, sourcing and merchandising, all while recognizing that smaller, tighter footprints with significantly lower fixed cost models is a winning recipe,' Lemonis said last year when the partnership was announced. If the pilot program goes well, it could lead to a broader physical store rollout, the company said. Home decor chain Kirkland's operates more than 300 of its own stores across more than 30 states.