Recent input-output price policy in Pakistan's agriculture: effects on producers and consumers

Abstract

The paper analyses the impact of the input-output price policy in Pakistani 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 minimized by assured world prices for agriculture and restoration of true competition in agricultural commodity and input markets. In agricultural input markets, elimination of corruption, excessive profiteering and overstaffing should serve as the basis of a cost reduction strategy and 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. -Author