The main objective of this research is to improve the self-sufficiency rate of wheat. So, the effect of economic liberalization policy on wheat production and consumption has been studied. It has been revealed that wheat area and productivity have been increased through the liberalization period. Wheat area has responded to one year lagged wheat area, productivity, and net return of Berseem. Concerning the policy effect on average cost per feddan, it has been found that it has significantly increased as a result of increasing the production requirements prices. Also, the profitability of invested pound in wheat production has increases during the same period. Results have indicated that policy positively affected the efficient use of resources and comparative advantage of wheat production. Under this policy, biological technology has been applied to wheat production in Sharkia, Gharbia, Souhag, Dakahlia, and Assuit governorates. This resulted in an increase, in wheat production, of about 508 tons. Therefore, wheat imports have been reduced in about LE 522.7 million in 2003. Finally, wheat gap decreased, under liberalization policy, as a result of production increase and consumption rationalization. So, the study recommends that wheat area should expanded, especially in the new lands, high yielding varieties should be applied and reallocated. 0n the other hand, wheat consumption should be rationalized and wheat waste should be minimized.