The Impact of Price and Production Agricultural Policies on the Economic Efficiency of Rice Production in Egypt

Radwan, Fatheya; Alkhateeb, Tarek Tawfik Yousef; Hanbel, Yasmin Emad-Eldin Ahmed; Mohamed, Samy

doi:10.21608/jsas.2025.370432.1511

The Impact of Price and Production Agricultural Policies on the Economic Efficiency of Rice Production in Egypt

Document Type : Original Article

Authors

¹ KFS

² Professor, Department of Agricultural Economics, of Agricultural Economics, Kafrelsheikh University, Kafrelsheikh 33511, Egypt; tkhteb1@gmail.com, tkhteb@yahoo.com

³ Economics Research Institute, Agricultural Research Center, Kafrelsheikh, Egypt

⁴ Samy Esmail Basiouny Mohamed Agricultural Economics Kafrelsheikh University

10.21608/jsas.2025.370432.1511

Abstract

RICE is considered one of the strategic crops in Egypt, playing a vital role in food security and the national economy. However, agricultural policies related to pricing and production have directly
impacted the economic efficiency of its production, leading to challenges concerning productivity, resource sustainability, and farmers' income. The point of this study is to look at how Egyptian agricultural policies affected the economic efficiency of rice production from 2005 to 2022 by looking at how these policies changed productivity, cost structures, and how resources were shared among farmers. The study uses the policy analysis matrix method to give a detailed look at how well these policies match up with the ideas of economic efficiency. The analysis results revealed that the nominal protection coefficient for producers reached 0.813, meaning that producers received prices 18.7% lower than their global counterparts, negatively affecting production incentives. The results also showed that the nominal protection coefficient for production inputs reached 0.909. This means that farmers paid 90.1% of the global price for inputs, which means that the government's help was decreasing. The domestic resource cost (DRC) coefficient was 0.430, indicating that domestic rice production is more efficient than its import. However, the government support rate for producers (SRP) was low at 0.084, limiting farmers' ability to expand production. Based on these findings, the study suggests changing pricing policies to help farmers, giving more help for production inputs, and making marketing and export systems better. It also suggests using modern farming methods to boost food security and make production more efficient. This study serves as an important reference for policymakers to develop more balanced policies that support farmers and enhance economic efficiency. Further research on the impact of agricultural policies on other agricultural sectors is also possible, which contributes to the achievement of sustainable agricultural development.

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