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The supply response of basmati rice growers in Punjab, Pakistan: price and non-price determinants

  • Umar Farooq

    (Agricultural Economics Research Unit, AARI, Faisalabad, Pakistan)

  • Trevor Young

    (School of Economic Studies, University of Manchester, Manchester, UK)

  • Noel Russell

    (School of Economic Studies, University of Manchester, Manchester, UK)

  • Muhammad Iqbal

    (Agricultural Economics Research Unit, AARI, Faisalabad, Pakistan)

Pakistan's stated policy is to increase basmati rice production through price support measures and liberalization of input markets. The present study assesses the scope for price support policy to achieve growth targets and whether additional assistance is needed from non-price policy measures. The econometric analysis is based on a profit function using farm household survey data from the Punjab. Pakistan for 1995-1996. The results reveal that to achieve production targets, very high support prices are required. Since these price levels may not be feasible, a more appropriate option may involve some inducements to expand paddy area and the area allocated to modern varieties. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.728
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 13 (2001)
Issue (Month): 2 ()
Pages: 227-237

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Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:227-237
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Munir Ahmad & Azkar Ahmad, 1998. "An Analysis of the Sources of Wheat Output Growth in the Barani Area of the Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 231-249.
  2. Pervez Hasan, 1998. "Pakistan at the Threshold of the 21st Century: How to Shape a Better Economic Future?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 85-122.
  3. Abid A. Burki & Haq Nawaz Shah, 1998. "Stochastic Frontier and Technical Efficiency of Farms in Irrigated Areas of Pakistan's Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(3), pages 275-291.
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