From Al Masry Al Youm: Agricultural reforms needed to combat food insecurity, say experts

With monthly rising inflation and decreasing foreign reserves ― down 50 percent from US$40 billion in 2010 ― experts say the government can no longer support its food subsidy system, which is one of the largest in the world. According to them, the new government must institute far-reaching food subsidy reforms and better invest in the flagging agriculture sector.

“Everyone knows the system of food subsidies must be changed, but there’s been a lack of political will and with the current dire situation of public finance, it cannot be tolerated anymore,” says Magda Kandil, the executive director of the Egyptian Center for Economic Studies. “To continue to kid ourselves by borrowing money to make these resources available, everyone is paying for this method,” she adds.

The current system is too broad, experts say, to reach those most in need. Nearly 80 percent of the population purchases subsidized bread, according to the economic research organization. However, the resources should be going to a substantially smaller portion of the population, according to Kandil.

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