Growing concern in Egypt in recent years over the scale of food Imports has resulted in the Government placing considerable stress on both raising productivity in the agricultural sector and the marketed surplus of food grains. To date, this policy has reaped limited rewards and the sharply declining trend in food self-sufficiency remains unmodified. This paper surveys the problem of domestic food production shortfalls in the light of developments in the nature of government interventions in a range of market functions. Particular attention is paid to, on the one hand, demand side factors associated with a high growth rate through the last ten years and the system of food and energy subsidies set up since 1973 and, on the other hand, to the supply constraints existing In agriculture.