ECONOMIC ANALYSIS OF THE AGRICULTURAL POLICY OF THE EGYPTIAN RICE CROP

Document Type : Original Article

Authors

1 Post Graduate student, Institute of Environmental Studies and Research, Ain-Shams University

2 Department of Agricultural Economics, Faculty of Agriculture, Ain Shams University

3 Crops Department, Faculty of Agriculture, Ain Shams University

Abstract

Agricultural production is not sufficient for the needs and desires of individuals, which led to the trend towards import to fill the deficit in agricultural production, especially in strategic crops such as rice, and the Egyptian agricultural policy to encourage farmers to grow these crops such as rice and some other crops by setting price levels for the Achieving local Production of these crops to reduce the deficit in The balance of agricultural trade.
The problem of research is that the government directly or indirectly intervenes in some policies in the supply of rice crop, which may be unfavorable to the producer. This has led to price imbalances between local and world prices.
The aim of this research is to study the impact of agricultural policies on the cost items of rice crop and to show the impact of policies on the revenues and value added using the policy Analysis matrix (PAM).
The research was based on published and unpublished data from government agencies and the world bank. The research used descriptive and quantitative statistical analysis methods and economic indicators of the agricultural policy analysis matrix to analyze the data and achieve the study objectives.
The research found that the nominal protection coefficient of the output reached 0.67 Throgle the Study Period (2000-2017), which means that producers pay implicit taxes of about 0.33 for the average period, as a result of not obtaining the real prices of their production, because the local farm price per ton of rice is lower than the border price in the years of study. This means the absence of a fair production policy and the existence of implicit taxes borne by rice producers in general, and the support and protection of commodity prices in the domestic market in favor of the consumer. As for the protection coefficient of production requirements, it reached 0.9 during the study period (2000-02017) and its value was less than the correct one, which indicates that the cost of inputs at local prices is lower than that of the border price, which means that the state provides support to farmers for production requirements. However, it should be noted that this subsidy is low and not more than 0.10 against the greater proportion of implicit taxes borne by farmers. The effective protection coefficient was 0.66, which implies the existence of implicit taxes to be borne by rice producers. Emphasizes the comparative advantage Egypt enjoys in producing the rice crop due to the lower cost of producing it locally than the cost of importing it.
The study recommended the establishment of marketing systems to ensure the product a profit margin that reduces the taxes incurred by rice farmers and the establishment of a price balancing fund to compensate farmers, work to support the production requirements of rice farmers, attention to scientific research to provide seeds with greater productivity and production requirements at a lower cost.

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Journal of Environmental Science
Volume 49, Issue 1 - Serial Number 1
: part 7 Agriculture
January 2020
Pages 189-212

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