The economic impact of the price policies on the lentil crop in Egypt | ||
| Egyptian Journal of Agricultural Research | ||
| Article 13, Volume 100, Issue 3, September 2022, Pages 420-432 PDF (797.89 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/ejar.2022.129545.1221 | ||
| Author | ||
| Rasha Mohammed Farag* | ||
| Economic Analysis of Agricultural Commodities Research Department, Agricultural Economics Research Institute (AERI), Agricultural Research Centre, Egypt. | ||
| Abstract | ||
| The lentil crop is of great importance in the legume group, as it occupies the second place after beans in nutritional importance, and its consumption spreads to most of the Egyptian population. Despite this, it was noticed that the cultivated area decreased from about 2.52 thousand feddans in 2011 to about 528 feddans in 2020, or about 79%. And the problem resulting from the inability of production to keep up with consumption of the lentil crop has led to an increase in prices, as the price of a kilogram of lentils amounted to about 8.8 L.E in 2011 and increased until it reached about 24.7 L.E / kg in 2020. The aim of the research is to estimate and analyze the impact of the agricultural policy during the last period on the production and consumption of lentils in Egypt. The results revealed that all costs items tended to increase during the period (2010-2020), as the total costs of producing feddans of lentils amounted to about 3,254 L.E/feddan in 2010 and increased to about 11,643 L.E/feddan in 2020. The results of the policy matrix analysis also showed that the producers of the lentil crop in Egypt pay a tax represented in the difference between the economic value and the financial value, which was estimated at about 3,355 L.E/feddan. There is no support for production inputs, which was revealed by the cost of production inputs at local prices, compared to Economical prices.And the net return achieved by the lentil crop is about 3682 L.E/feddan in the financial assessment and it is about 7031 L.E/feddan in the economic assessment, that is, the financial assessment is less than the economic assessment by about 3350 L.E/feddan. This confirms that lentil producers in Egypt take a local price lower than the international price and pay A tax estimated at the value of the difference between the net return at local prices compared to international prices. They also showed the added value of the lentil crop in the financial evaluation, which amounted to about 8631 L.E/feddan, which is less than the value added in the economic evaluation by about 3245 L.E/feddan, which amounted to about 11876 L.E/feddan, and this shows the low efficiency of the productive activity of the lentil crop. The results revealed that Egypt enjoyed a comparative advantage in the production of lentils, as the value of the local resource cost factor was about 0.41 during the average period (2010-2020), and it is better to produce lentils locally and limit its import. The results of the analysis of the partial equilibrium model for the application of the agricultural price policy during the period (2010-2020) for the lentil crop revealed that it had a positive impact on the consumption side and government revenues, while the implementation of the policies had a negative impact on the production side and the change in foreign exchange. This requires the state to follow some measures that motivate lentil producers to increase their production. | ||
| Keywords | ||
| Policy analysis matrix; partial equilibrium model; economic prices; market prices | ||
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