Governmental intervention in risk minimization for prices of principal commodities: the Egyptian case.

摘要

The study revealed the negative impact of international prices' fluctuation and increasing trends upon domestic plans to secure needs of price-subsidized bread in Egypt. Uncertainty with respect to international prices' changes call for neutralizing their influence on domestic prices. In this respect, the study suggested a contract agreement between the local authority and producers to deliver specific quotas of wheat and maize at prices determined in advance on bases of production costs and expected profitability of competitive crops, specifically clover, cotton and rice. The risk may still hold with respect to expected prices of competitive crops, rice in particular, as influenced by international price levels. However, such risk may be minimized if firmly activate regulations of irrigation water use, exerting limits upon rice's total acreage.