IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Managing Price Risk in the Pakistan Wheat Market

Listed author(s):
  • Faruqee, Rashid
  • Coleman, Jonathan R
  • Scott, Tom
Registered author(s):

    The government intervenes in the wheat market in Pakistan to ensure food security for consumers and to provide adequate and stable incomes for producers. The cost of this intervention is high, and its impact on the performance of agriculture has been significantly negative. The World Bank is urging policy changes such as removing agricultural trade restrictions, price supports, and subsidies. However, policymakers often resist such reforms, fearing that they will expose the domestic market to fluctuating international commodity prices. This article assesses the risk management needs of the sector and evaluates whether using financial instruments--such as commodity hedging using futures, options, or swaps--would improve risk management. Simulations based on monthly data for 1994 show that market-based methods of risk management could reduce the impact of international price volatility on the domestic market without incurring high government cost or distorting price signals. Copyright 1997 by Oxford University Press.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by World Bank Group in its journal World Bank Economic Review.

    Volume (Year): 11 (1997)
    Issue (Month): 2 (May)
    Pages: 263-292

    in new window

    Handle: RePEc:oup:wbecrv:v:11:y:1997:i:2:p:263-92
    Contact details of provider: Postal:
    Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK

    Phone: (202) 477-1234
    Fax: 01865 267 985
    Web page:

    More information through EDIRC

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:11:y:1997:i:2:p:263-92. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)

    or (Christopher F. Baum)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.