Wheat Self-sufficiency in Different Policy Scenarios and Their Likely Impacts on Producers, Consumers, and the Public Exchequer

Abedullah Abedullah and Mubarak Ali
Additional contact information
Mubarak Ali: Asian Vegetable Research and Development Center (AVRDC), Taiwan.

The Pakistan Development Review, 2001, vol. 40, issue 3, 203-223

Abstract: Every government faces a challenge to select an optimum policy to provide food supplies to the consumers at a reasonable price and maintain a reasonable nutritional standard. The alternative policy options available are an uninterrupted market, imports, input subsidies, price support, combined policy developed by the combination of input subsidy and price support, and investment on research and infrastructure development. This paper analyses the impact of these options on consumers’ and producers’ welfare, tax revenue, and foreign exchange requirement. The import and input subsidy give net return to the society while price support generates net loss. The triple combined policy option generates the highest net return to the society when each import and input subsidy component is combined with price support in the ratio of 40 and 20 percent, respectively. The best policies to provide higher wheat supplies at lower prices and to improve the welfare of consumers and producers were investment on agricultural research and development of irrigation infrastructure in the long run, but for the short run, the first and the second best option were respectively the combined and the input subsidy policy.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/2001/Volume3/203-223.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:40:y:2001:i:3:p:203-223

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().