Recent Input-Output Price Policy in Pakistan's Agriculture: Effects on Producers and Consumers

M. Ghaffar Chaudhry


The paper analyses the impact of the input-output price policy
in agriculture on producers and consumers. Trends in prices cause
immense resource transfers from agriculture. with adverse consequences
for investment, output, employment, and income distribution. To the
extent that these transfers accrue to industrialists and the government,
the poorest benefit the least. These deleterious effects can be
minimised by assured world prices for agriculture and restoration of
true competition in agricultural commodity and input marlcets. In
agricultural input marlcets, elimination of corruption; excessive
profiteering and overstaffing should serve as the basis of a cost
reduction strategyand removal of input subsidies. In the specific case
of irrigation water, equitable distribution, compatibility of water rate
assessment and water supply bases, and elimination of overstaffing are
the prime issues deserving immediate government attention.

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