Egypt has undertaken an economic reform and structural adjustment program with support from multilateral and bilateral donors. This program includes measures to reduce the fiscal deficit, reduce inflation, stabilise exchange rate, liberalise prices, and restructure and eventually privatise public sector enterprises. As a part of this economic reform and structural adjustment program, the agricultural sector is provided with price incentives, input and credit subsidies are abolished, prices of subsidised foods are raised, and the number of items that are subsidised is reduced as is the quantity of food subsidised and rationed to households. It is expected that as a consequence of these measures, food prices will rise, food consumption subsidies will fall, and the food consumption pattern will change. In the short run, these changes, taken together, may harm the poor households more than any other group of households.