The Multiple Effects of Procurement Price on Production and Procurement of Wheat in Pakistan

Thomas C. Pinckney

Abstract


An increase in the procurement price affects government
procurement of wheat in at least four ways. Properly estimating the
total effect requires taking account of both the direct effects of an
increased share of marketed surplus being procured and the indirect
effects through the impact on production, marketed surplus, and the
wholesale price. Estimates are that a real one-rupee increase per 40
kilograms - approximately 1.25 percent - will raise procurement by about
90 thousand tons.

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DOI: https://doi.org/10.30541/v28i2pp.95-120

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