However, in July 2001 the government implemented a new subsidy program for rice in an attempt to encourage exports. It is unclear whether the government will renew the rice export subsidy program next year. It is estimated that the current stocks stand at 1.2 million metric tons. Rice production is estimated at 5.8 million tons rough basis. Rice is a major summer crop in Egypt, occupying about 10 percent of the country s cultivated area.
Production is concentrated in northern Egypt and is entirely irrigated.
Farmers, however, normally exceed the target due to free irrigation water and the higher profitability of rice cultivation compared to other crops. The government rice policy is aimed at producing new varieties with higher yields, a shorter maturity period and greater insect and disease resistance. The new varieties were used in about 85 percent of the cultivated rice area in the 2000 crop. The government s target is to have the entire area planted with the high yielding, shorter maturity varieties by 2001. The government also recently authorized rough rice exports for the first time, providing an additional boost.