Wheat Price Policy in Pakistan: A Welfare Economics Approach * (AGRICULTURAL PRODUCTION AND PRICING Policies) (Report‪)‬

1. INTRODUCTION The production of wheat is vital to the economy of Pakistan; wheat accounts for over one-third of planted acreage, contributes roughly one-third of the agricultural sector's value added, and is the major staple in the nation's diet. The growth rate of wheat production in Pakistan over the past thirty years has been phenomenal: nearly five percent per year [Cornelisse and Kuijpers (1987)]. This outstanding performance in the growth of wheat output is remarkable considering that it has occurred in spite of government intervention that has reduced incentives to wheat production.