Towards a Free Market: A Blueprint for Wheat Sector Deregulation

Muhammad Faisal Ali and Sobia Rose
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Muhammad Faisal Ali: Pakistan Institute of Development Economics, Islamabad
Sobia Rose: Pakistan Institute of Development Economics, Islamabad

No 2025:48, PIDE Policy View Point from Pakistan Institute of Development Economics

Abstract: The wheat crisis in Pakistan accentuates the complexities and challenges of agricultural market management. That is the reason the wheat crop has always been a subject of serious debate. The Minimum Support Price (MSP) policy was one of the key factors, as substantial funds from taxpayers' money have been consumed to continue this policy. However, it has neither helped stabilize the market during crises nor protected the consumers and producers, who are assumed to be the primary beneficiaries. Conversely, flour mill owners, large landholders, or middlemen remained the primary recipients of the greatest gains. Consequently, fixing the MSP has led to unintended consequences, raising concerns about the policy's sustainability, market efficiency, and overall effectiveness

Keywords: wheat market deregulation; wheat crisis Pakistan; wheat support price policy; minimum support price Pakistan; wheat market reform; wheat price Pakistan; wheat subsidy Punjab; agriculture policy Pakistan; food security Pakistan; wheat cartel Pakistan; deregulating wheat; wheat procurement issues; circular debt wheat; flour mills Pakistan; wheat farmers Pakistan; MSP policy impact; government wheat withdrawal; wheat market sustainability; strategic wheat reserves; wheat buffer stock policy; wheat production incentives; wheat policy execution; agricultural market management; wheat policy framework; wheat economy Pakistan (search for similar items in EconPapers)
Pages: 8 pages
Date: 2025
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