When the government tried to raise the bread price radically in the 1970s,
this led to political unrest. However, pressured by the World Bank to stop the
subsidies, the state reduced them gradually. Considering the country’s food
consumption statistics, we should remember that a great proportion of the
cheap wheat flour delivered to the bakeries is used illegally as chicken feed.
Table 8.6 shows that during 1998 Egypt had to import more than 40 per cent
of the wheat consumed in the country, which cost more than 4.4 per cent of
the country’s total imports, about US$554 million (CAPMAS 2001b: 274ff ).
At the same time the value of the export of cotton and cotton yarn, Egypt’s
main agricultural export goods, reached only US$309 million. The decreasing
self-sufficiency of the country in terms of staple foods is a topic of discussion
among economics experts. As regards the huge wheat gap (see Figure 8.5)
the question is being raised as to whether efforts should be made to produce
greater amounts of wheat for domestic consumption, or whether it would be
more profitable, since Egypt has excellent soils and a favourable climate, to
produce agrarian goods of a higher value, like early vegetables or fruits,