Assessment of the Partial Equilibrium Model of the Wheat Crop in Egypt.

Wheat is considered the main grain crop in Egypt, since it produces the Baladi bread, which is the main source of carbohydrates for the Egyptian population. Egypt is considered the largest importer of wheat in the world. Despite the annual increase in wheat production, this production is not sufficient to meet the demand, so the state tries to fill this gap through imports, which puts a burden on the country's budget.
The study aimed to determine the characteristics of the agricultural price policy for wheat crop, identify imbalances in prices, and assess the value of subsidies received by or taxes imposed on wheat producers and consumers in Egypt using partial equilibrium model.
The result revealed that the average nominal coefficient for wheat reached during the study period was 0.86, which means that wheat producers receiving only 86% of the real price, implying that the government has been imposing taxes on wheat producers to subsidize domestic consumers. The net economic loss in production and consumption was about 105 million pounds and the net economic loss in consumption was (150) million pounds on average during the period (2000-2018), the average loss in the government's revenue reached (8864) million pounds during the study period. As for the country’s revenue from foreign exchange amounted to 1883 million pounds on average during the study period.