Price Distortions and their Impact on the Welfare of Society Production Sector of Sugar in Egypt

Document Type : Original Article

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Desert Research Center

Abstract

The food industry sector represents one of the most important main sectors in the Egyptian economy, so the state pays attention to it with the aim of achieving the largest part of the food needs to meet the requirements of the members of society. Sugar is considered one of the most important strategic food commodities in this sector, which occupies an important economic position among all food commodities. It is included in the food consumption pattern of all members of society, in addition to being a strategic industry that receives the attention of Egyptian economic policy makers, due to the added value it achieves, and the employment and investments it absorbs. The results of the search show: The variables of domestic production, consumption, the amount available for consumption, and the average per capita share of sugar took a general increasing trend by a statistically significant annual amount of about 36.8, 48.7 thousand tons, and 1.1 kg, respectively, while it was found that the variables of the food gap, the percentage of self-sufficiency in Sugar is morale. The value of the average protection coefficient and the nominal protection rate were about 1.69 and 0.69, respectively, which means that the tax rate imposed on sugar amounted to about 69%. It is also clear that the values of the nominal protection rate during the study period were positive and less than one.

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