Measuring the Impact of Price Policy on the Onion Market in Egypt: Partial Equilibrium (PEM) Model

This paper examines the current situation of onion production and the marketing margin in Egypt during the period (2000-2020). The analysis highlights the distribution of marketing margins among different market participants, indicating that wholesalers and retailers obtain a larger share compared to producers. Furthermore, the study seeks to assess price distortions and the extent of subsidies received by consumers or taxes imposed on onion producers in Egypt. Additionally, it examines the impact of government intervention policies on production, consumption, government
revenue, and overall societal welfare using a partial equilibrium model. Under the partial equilibrium model, the study period is divided into two phases: The pre-exchange rate liberalization period (2000-2015) and the post-exchange rate liberalization period (2016-2020). The study's findings revealed that average nominal protection coefficient (NPC) for onion was 0.34 during the first period, declining to 0.30 in the second period, this suggests that onion producers received only 34% and 30% of their products value over the two periods, respectively. implying that the government policies during the study period has been imposing taxes on onion producers to subsidize domestic consumers.