scholarly journals On the Wheat Price Support Policy in Pakistan

2019 ◽  
Vol 1 (3) ◽  
pp. 80-86
Author(s):  
Muhammad Aamir Shahzad ◽  
Amar Razzaq ◽  
Ping Qing
Keyword(s):  
Financial Burden ◽  
Production Costs ◽  
Price Support ◽  
Minimum Support ◽  
Wheat Production ◽  
Support Price ◽  
The Government ◽  
The Impact ◽  
Heavy Financial Burden ◽  
Price Policies

Wheat is Pakistan's main food and strategic crop. Currently, the government controls wheat prices through a minimum support price (MSP) policy to encourage production. However, despite the increase in wheat production, input costs and output prices have been increasing over the years. This paper aims to analyse the impact of wheat support price policies. We use data from different government sources to estimate the financial implications of MSP and compare the support price policies of India and Pakistan. We find that Pakistan’s current minimum support price policy encourages farmers to produce larger quantities of wheat, but this places a heavy financial burden on the country's finances. Our results indicate that the higher MSP of wheat has made the country lose its competitiveness in the international market. Besides, we found that the cost of wheat production in Pakistan is much higher than in India. These higher production costs force the government to raise the MSP to maintain farmers' profitability. The high MSP is guaranteed by subsidizing the procurement and release of wheat, which imposes a heavy financial burden on government finances. In addition, the rise in wheat prices in recent years has also hurt consumers. Policymakers can redistribute subsidies by subsidizing wheat inputs, especially fertilizers and seeds, to reduce production costs. To this end, the best policy intervention may be to provide input subsidies rather than subsidies on purchase prices. A reduction in input costs will correspondingly reduce output prices, which will increase farmers' profitability, consumer surplus and the international competitiveness of Pakistani wheat.

Effectiveness of Auctions in Securing Price Support for Farmers: The Case of a Grain Market in India

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Neha Gupta
Keyword(s):  
Lower Cost ◽  
Secondary Data ◽  
Price Support ◽  
Minimum Support ◽  
Minimum Price ◽  
Support Price ◽  
The Government ◽  
Nonparametric Estimates ◽  
The Impact ◽  
Analyze Data

Abstract This paper reviews rice procurement operations of Government of India from the standpoints of cost of procurement as well as effectiveness in supporting farmers’ incomes. The two channels in use for procuring rice till 2015, were custom milling of rice and levy. In the first, the government bought paddy directly from farmers at the minimum support price (MSP) and got it milled from private millers; while in the second, it purchased rice from private millers at a pre-announced levy price thus providing indirect price support to farmers. Secondary data reveal that levy, despite implying lower cost of procurement was discriminated against till about a decade back and eventually abolished in 2015 in favor of custom milling, better trusted to provide minimum price support. We analyze data from auctions of paddy from a year when levy was still important to investigate its impact on farmers’ revenues. We use semi-nonparametric estimates of millers’ values to simulate farmers’ expected revenues and find these to be rather close to the MSP; a closer analysis shows that bidder competition is critical to this result. Finally, we use our estimates to quantify the impact of change in levy price on farmers’ revenues and use this to discuss ways to revive the levy channel.

scholarly journals The Impact of the Direct Peanut Price Support Program on Farm Income and Government Cost

1975 ◽  
Vol 7 (1) ◽  
pp. 247-252 ◽  
Author(s):  
Inbum Song ◽  
John R. Franzmann ◽  
John F. Mead
Keyword(s):  
Market Price ◽  
Support Program ◽  
Farm Income ◽  
Price Support ◽  
Support Price ◽  
The Government ◽  
Parity Price ◽  
Operation Results ◽  
On Farm ◽  
The Impact

Two major programs — allotment-quota and price support — have been in force to support peanut farming since 1952. The purpose is to restrict production of peanuts while supporting the price of peanuts produced. Production is restricted through the allotment-quota program, determined by the Secretary of Agriculture, and converted to a national acreage allotment. However, minimum national acreage allotment has been fixed at 1.61 million acres. The price support program provided that price be supported no lower than 75 percent of the parity price of peanuts. Under the programs, peanuts produced by the grower are sold on the market at the support price for edible uses and excess quantities are sold to the government at the support price. Peanuts purchased by the government are stored and later sold for crushing at the going market price. Because peanuts for crushing command a much lower price than the government acquisition price, the purchase-and-resale operation results in a net loss representing public cost of the peanut price support program.

scholarly journals An Analytical Study of Relationship between Socio-Economic Profile and Impact of Minimum Support Price Scheme on Small Farmers of Begusarai District of Bihar

2021 ◽  
Vol 8 (8) ◽  
pp. 70-79
Author(s):  
Krishna Kumar ◽  
Syed H. Mazhar
Keyword(s):  
Low Income ◽  
Price Policy ◽  
School Level ◽  
Primary Data ◽  
Extension Agents ◽  
Small Farmers ◽  
Minimum Support ◽  
Support Price ◽  
The Government ◽  
The Impact

Minimum Support Price fixed by the government to protect the farmers against excessive fall in price during bumper production years. Questions, are being raised about the efficacy and effectiveness of the instruments of price policy specifically the Minimum Support Prices. Under these circumstances it assumes greater significance to understand the impact caused by the minimum support prices on small farmers with socio-economic scale. Total of 60 beneficiaries and 60 non-beneficiaries was selected in Teghara block of Bihar district by purposive sampling method. The primary data were collected with the help of interview schedule and the responses were recorded, classified and tabulated and appropriate statistical tools were employed. The results showed that higher percentage of small farmers were middle aged, attained middle school level education and had low income, the beneficiaries who had primary school level education with high farm experience, present near to the market and contacted extension agents had been sought to have more impacted.

scholarly journals The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect

2021 ◽  
Vol 18 (8) ◽  
pp. 4045
Author(s):  
Yinhao Wu ◽  
Shumin Yu ◽  
Xiangdong Duan
Keyword(s):  
Environmental Regulation ◽  
Local Economic Development ◽  
Negative Impact ◽  
Empirical Test ◽  
Mediating Effect ◽  
Production Costs ◽  
Agglomeration Effect ◽  
The Government ◽  
Pollutant Discharge ◽  
The Impact

Pollution-intensive industries (PIIs) have both scale effect and environmental sensitivity. Therefore, this paper studies how environmental regulation (ER) affects the location dynamics of PIIs under the agglomeration effect. Our results show that, ER can increase the production costs of pollution-intensive firms (PIFs) by internalizing the negative impact of pollutant discharge in a region, and thus, directly reduces the region’s attractiveness to PIFs. Meanwhile, ER can indirectly reduce the attractiveness of a region to PIFs by reducing the externality of the regional agglomeration effect. Moreover, these influences are regulated by the level of local economic development. Based on the moderated mediating effect model, we find evidence from the site selection activities of newly built chemical firms in cities across China. The empirical test shows that compared with 2014, the proportion of the direct effect of ER to the total effects significantly decreased in 2018, while the proportion of indirect effects under the agglomeration effect increased significantly. Our findings provide reference for the government to design effective environmental policies to guide the location choice of new PIFs.

scholarly journals Study on Profitability of Wheat in Major Wheat Producing States of India

2021 ◽  
pp. 1-7
Author(s):  
Ankita Sahu ◽  
Sunil Nahatkar ◽  
Gourav Kumar Vani ◽  
Prasanna Kolar
Keyword(s):  
Uttar Pradesh ◽  
Secondary Data ◽  
Madhya Pradesh ◽  
Total Cost ◽  
Minimum Support ◽  
Wheat Production ◽  
Support Price ◽  
Margin Of Safety ◽  
The Difference ◽  
Actual Yield

The present study was undertaken with the objective to compare the minimum support price (MSP) with total Cost (C2) of wheat and also actual yield with break-even yield in major wheat producing states of India. The secondary data were collected from Directorate of Economics and Statistics for the period 2000-01 to 2016-17. The area of study comprises those states which covered >80 per cent of wheat production in India (i.e., Uttar Pradesh, Madhya Pradesh, Punjab, Rajasthan and Haryana). The result of study showed that the difference between MSP and cost C2 per quintal was found to be positive but fluctuating over the study period (except in the year 2002-03 and 2005-06 in Madhya Pradesh and 2005-06 and 2014-15 in Uttar Pradesh). It can be concluded that wheat growers of the states benefitted more from MSP by cultivation of wheat. The margin of safety was also fluctuating over the period of time in all the five wheat-producing states but gap continuously widening in Madhya Pradesh and Rajasthan revealed that the profitability from wheat was increasing in these states.

scholarly journals The Impact of Price Policies on Wheat Production in Egypt أثر السیاسات السعریة على إنتاج محصول القمح فى مصر

2019 ◽  
Vol 10 (3) ◽  
pp. 133-140
Author(s):  
عبد المنعم محمد ◽  
ولید نصار ◽  
رضوان عمار ◽  
إیمان منسى
Keyword(s):  
Wheat Production ◽  
The Impact ◽  
Price Policies

scholarly journals Assessing the Impact of Out-of-Pocket Expenditures for Prevention of COVID-19 Infection on Households: Evidence From Malaysia

2021 ◽  
Vol 58 ◽  
pp. 004695802110624
Author(s):  
Hafiz Jaafar ◽  
Nur Amalina Abd Laziz ◽  
Muslimah Ithnin ◽  
Amirah Azzeri
Keyword(s):  
Cost Sharing ◽  
Household Income ◽  
Public Universities ◽  
Preventive Measures ◽  
Financial Burden ◽  
Descriptive Study ◽  
Economic Implications ◽  
The Public ◽  
The Government ◽  
The Impact

COVID-19 infection resulted in significant economic implications to patients as well as a considerable financial burden to the general population for preventive measures. A descriptive study was conducted among staff at one of the public universities in Malaysia to estimate the monthly out-of-pocket expenditures for preventive measures used for COVID-19 infection. The study tool includes questions on household out-of-pocket expenditure and the measurements of the impact of the expenditure on household income. It was found that the average cumulative monthly expenditures related to the preventive measures were US$ 45.90 (Ringgit Malaysia 187.77), which was 4.3% of the household income. The highest expenditures were for traditional and complementary medicine followed by nutraceutical/supplements and disposable facemask. 8% of the households in this study incurred more than ten per cents of their monthly household income for expenditures related to COVID-19 preventive measures. Several households are experiencing substantial financial implications for preventive measures related to COVID-19 infection. This study highlights the out-of-pocket expenditures incurred for preventive measures were substantial for certain households. Effective initiatives from the government on providing subsidized protective personal equipment and a cost-sharing approach could help to alleviate the household financial burden.

Trade Liberalization, Standards and Protection

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Azim Essaji
Keyword(s):  
Trade Liberalization ◽  
Production Costs ◽  
Foreign Firms ◽  
Cournot Duopoly ◽  
Import Penetration ◽  
Duopoly Model ◽  
Ex Ante ◽  
Consumption Externality ◽  
The Government ◽  
The Impact

Abstract As conventional trade barriers fall, nations may increasingly resort to product standards to protect domestic industries. While ostensibly protecting their citizens from the environmental and health side-effects of a particular product, countries could enact standards that are facially-neutral, but impose greater compliance costs on foreign producers. This paper examines the impact of trade liberalization on standard setting by using a two-country Cournot duopoly model in which the Domestic government imposes a standard to mitigate a consumption externality. The standard increases production costs for both Domestic and Foreign firms, especially for the latter. The paper finds that one cannot make an unequivocal connection between falling tariffs and subsidies and rising standards. If the initial tariffs or subsidies are prohibitive, reducing subsidies and tariffs to allow minimal import penetration will generally create incentives for the Domestic government to impose higher standards. If the ex ante tariffs are not prohibitive, however, it is only optimal for the government to raise standards following tariff cuts if (i) tariff revenues are an important component of the welfare calculus and the ex ante tariff rate is high, or (ii) the standard's effect on the per unit externality is large. Likewise, if the initial subsidies are small enough to allow imports the government should only raise standards following subsidy reductions if the per unit externality is substantial, or the standard's impact on the per unit externality is large.

scholarly journals Development of Agriculture Model to Measure Survival Income for Different Categories of Agriculture Land-Holding Farmers

2021 ◽  
Author(s):  
Masood Ahmed
Keyword(s):  
Rural Population ◽  
Market Price ◽  
Small Farmers ◽  
Poverty Level ◽  
Minimum Support ◽  
Agriculture Land ◽  
Support Price ◽  
The Impact

The rural population percentage decreased from 82.7% to 68.9% in 2011, even though there is an increase in the total rural population, which stands at 833.7 million, and the rural population were now more than three times compared to the population seven decades ago. Another observation is the decrease in cultivators percentage from 71.9% to 45.1 %, while agriculture labour increase from 28.1% to 54.9% during the same period. Despite the increase in irrigated land and net area sown, the average holdings' size under the farmers is continuously decreasing, and it requires a study to look into the reasons. The research probes the role of Minimum Support Price (MSP) in supporting farmers and measuring market price above MSP needed to help marginal and small farmers remain above the poverty level. It explains how different market rates above MSP have a different impact on different categories of agriculture landholding. The study works on developing a common model that relates the impact of MSP on different farmers categories. The model can be generalized to all crops and regions and useful in designing policies that focus on uplifting the income of agricultural farmers.

scholarly journals Interrogating the MSP Regime, Farm Laws and Agrarian Future in India

2021 ◽  
pp. 097639962110569
Author(s):  
Pritam Singh ◽  
Shruti Bhogal
Keyword(s):  
Agricultural Marketing ◽  
Minimum Support ◽  
Support Price ◽  
The Government ◽  
Legal Right

The three new farm laws promulgated by the Government of India in 2020 as agricultural marketing reforms, with the claim that they were aimed at expanding farmers’ marketing choices and increasing their incomes, have triggered massive protests by farmers. These protests have crystallized around two key demands: first, repeal the laws and second, make the minimum support price (MSP) for procuring farmers’ produce a legal right. Given that discussions between the government and farmers’ organizations continue to be at an impasse, it is critical to understand the arguments over the laws and the MSP, and the implications of these arguments for the agrarian future of India.

Sign in / Sign up

Export Citation Format

Share Document