Wheat Policy Reform in Egypt Adjustment of Local Markets & Options for Further Reforms

The experience with market reform in Egyptian agriculture so far raises various issues concerning the sustainability and extension of the reform process. Based on official reports, the reforms have led to increases in aggregate production and yields of various crops. However, clear evidence is lacking in this respect, as well as regarding the extent and quality of private sector participation, and the impact on distribution costs, the price transmission process, and on the stability of foodgrain prices. Findings from the exploratory study of 1993/94 indicate that private traders still seem hesitant to engage in long-distance inter-governorate trading and that market integration is still limited suggesting persistent rigidities in the marketing system. The objective of the present project, which is still on-going, is to study the adjustment of local marketing and production sectors to the process of liberalization and identify policy options to strengthen the emerging marketing system and minimize the cost of transition to a private sector based wheat marketing system.

• Collaboration
• Research Tasks
• Field Activities
• Research Findings