Economic Study for the Production and Marketing of Rice in Egypt

Abstract: ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
• Mansoura Journal of Agricultural Sciences, Mansoura University, Vol.(34), No.(1), Mansoura, Egypt, January 2009.
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The research problem is represented in the continuous increase in total area cultivated with summer rice during the period 1990-2007 despite the fact that the Governmental penalties imposed on violators, in addition to the implicit tax producers incur, result in producers obtaining lower price compared to the equivalent price they should obtain for their crop. This means that the implicit tax and penalties are insufficient to stop this phenomena, which if continued would negatively affect future horizontal development.
The research aimed to study the important production and marketing variables for rice crop during the period 1990-2007 in order to determine the most important variables affecting farmer's decision to cultivate rice, and therefore introduce some suggestions to decrease rice area to its aimed area in the indicative cropping pattern.
The economic and statistical analysis showed the following results:
-Area, yield and total production increased significantly by 2.04%, 1.96%, and 3.9% per year respectively during the period 1990-2007.
Dakahlia, Sharkia, Kafr El sheikh, Behiera and Gharbia are considered to be the most important governorates in cultivating rice, where cultivated area in each governorate represented about 28.4%, 18.8%, 17.3%, 13.9% and 11.3%, and about 29.7%, 18.2%, 18%,13.9%, 11.3% of the total cultivated area and production of rice in Egypt during the period 1990-2007
The most important cultivated rice verities in Egypt according to the relative importance of cultivated area and water needs are: Sakha 101, Giza 178, Sakha 104, Giza 177, Sakha 102, where they represented about 40% , 21.5%, 16.6%, 13.1% and 3 % respectively of the total cultivated area with rice in Egypt during the period 1990-2007.
The study showed a statistically significant positive relationship between area cultivated with summer rice in the current year and each of the farm-gate price of summer rice per ton in Egyptian pound lagged one year, and the Nominal Protection Coefficient for summer rice lagged one year, while showed a statistically significant negative relationship with the farm-gate price of summer maize lagged one year. These three variables are responsible for 73 % of the changes in total area cultivated with summer rice in Egypt during the period 1990-2007.
Cost per feddan, cost per ton, Net return per feddan and net return for water unit increased significantly by 4.11%, 6%, 8.23% and 8.21% per year respectively during the period 1990-2007. Also Producer price, wholesale price, consumer price increased significantly by 6.2%, 5.1%, and 4.9%, per year respectively during the period 1990-2007.
The producer, wholesaler and retailer share in consumer pound were estimated by 48.8%, 40.1% and 11.1% respectively during the period 1990-2007. The marketing margins reached about 584.1, 163.8 and 747.9 LE/ton for wholesaler-producer level, retailer- wholesaler level and retailer-consumer level during the same previous period
The study also showed a positive relationship between the Nominal Protection Coefficient for rice and its cultivated area, and in order to reduce the area cultivated with rice to the area targeted in the indicative cropping pattern (estimated by 1.1 million feddan), the Nominal Protection Coefficient should be around 0.28, and the farm-gate price of maize, which is the main competing crop of summer rice, should be increased.
The study recommends the following:
- Activating the legislations concerning violations of rice-growing area limits and never abolishing violation fines under any reason, and accelerating the issuance of the irrigation and drainage law which includes toughening the penalty for offenses to include imprisonment in addition to a fine.
- Continuing the imposition of a tax on rice exports to reduce its cultivated area to 1.1 million feddan, which is the targeted area in indicative cropping pattern, and therefore providing rice in the local market at reasonable prices.
- Giving more attention to increasing the productivity and farm-gate price of summer maize to be more profitable and competitive and start to partially replace rice crop.
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URL
Publication year 2009
Availability location مكتبة كلية الزراعة - جامعة المنصورة - المنصورة، الدقهلية، مصر
Availability number
Organization Name
City الدقهلية
serial title مجلة المنصورة للعلوم الزراعية
Web Page
Author(s) from ARC
Publication Type Journal