An Analysis of Agricultural Policy for Broad Beans in Egypt

Document Type : Original Article

Authors

1 Department of Economic Studies - Desert Research Center

2 Agricultural Economics Research Institute - Agricultural Research Center

Abstract

The research aimed to analyze the agricultural policy of the local bean crop as one of the important imported legume crops, and to determine the role of the state in the efficient use of available resources by estimating the size of transfers resulting from the state's adoption of the economic liberalization policy and identifying the essence of these policies, whether protectionist or tax-related, in addition to measuring the extent of local price distortions to determine the extent of their deviation from global prices. The research reached several results, the most important of which are:
1- The research results indicated that the value of the financial and economic revenue per feddan from the local bean crop during the period (2010-2022) amounted to about (10.8,14.1) thousand pounds/feddan, respectively.
2- It was found that the average value of the nominal protection factor for the products (outputs) per feddan of the local bean crop during the research period was less than the correct one except for the years 2010 and 2021, which means that the state did not intervene to protect the crop's production in the local market during these two years, which indicates the existence of implicit taxes borne by producers.
3- The results of the matrix indicated that the nominal protection factor for the production requirements (inputs) traded for the crop was less than the correct one, which indicates that the cost of inputs at local prices was less than its counterpart at the border price, which indicates that there is support for the requirements of production elements and that its percentage was very close during the study period.
4- It was also found that the value of the effective protection factor for the crop was less than one in all research years except for 2010 and 2021, which means that starting from 2011, the added value of the local bean crop at local prices was less than its counterpart at global prices, and that there are implicit taxes borne by local bean producers during the research period.
5- It was also found that the comparative advantage factor for the crop was less than one, which confirms the comparative advantage that Egypt enjoys in its production.

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