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The welfare impact of policy interventions in the foodgrain markets in Bangladesh


  • Mohammad Jahangir Alam
  • Jeroen Buysse
  • Ismat Ara Begum
  • Eric J. Wailes
  • Guido Van Huylenbroeck


The paper attempts to estimate the welfare impact of different policy interventions in the foodgrain markets in Bangladesh using an economic surplus approach. Over the period of analysis, 1980--2003, the loss in consumer surplus exceeded the gain in producer surplus plus the gain in government revenue. Therefore, the interventions resulted in a deadweight welfare loss for society. In contrast, in the policy of liberalization, the gain in consumer surplus and in government revenue is larger than the loss in producer surplus, producing a net welfare gain to society.

Suggested Citation

  • Mohammad Jahangir Alam & Jeroen Buysse & Ismat Ara Begum & Eric J. Wailes & Guido Van Huylenbroeck, 2011. "The welfare impact of policy interventions in the foodgrain markets in Bangladesh," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 14(3), pages 215-225, September.
  • Handle: RePEc:taf:jpolrf:v:14:y:2011:i:3:p:215-225
    DOI: 10.1080/17487870.2011.570092

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    References listed on IDEAS

    1. Ahmed, Raisuddin, 1981. "Agricultural price policies under complex socioeconomic and natural constraints: the case of Bangladesh," Research reports 27, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Talukder, Dayal & Chile, Love, 2014. "Characteristics of Rice Cultivation and Rural Rice Market in Bangladesh: Evidence from a Survey," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), June.

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