Impact of Agricultural Policy on Wheat Crop in Egypt

Document Type : Original Research

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Department of Agricultural Economics, Faculty of Agriculture, Minia University, Egypt

Abstract

This research aims to clarify price imbalances, and the size of subsidies or taxes imposed on producers and consumers of wheat crop in Egypt, besides identifying the impact of government intervention policies production, consumption, and government revenue. The results showed that the governmental burdens borne by the state in the event of its intervention or non-intervention reached the highest value of about 684.6 and 1353.3 million dollars in 2017, for both cases, respectively, the year that witnessed support by the state, while the highest value of government revenues amounted to about 686.2, 1651.9 million $ in 2011 also for both cases, the year in which the highest implicit taxes were imposed. While Egypt bears governmental burdens in the event of the state’s intervention by imposing a tariff on imports, the results also showed that in the event of state intervention or non-intervention, the average net economic loss for the consumer as a result of importing the wheat crop during the period (2003-2020) was about 20, 18.1 million $, with values ranging from a minimum of about 0.3 million dollars in 2012 and a maximum of about 112.2 million $ in 2010. The reason for the high net economic loss of the consumer may be due to the gap between the volume of consumption at the border price than the volume of consumption at the farm price.

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