Managing Price Risk in the Pakistan Wheat Market
The purpose of government intervention in the wheat market in Pakistan is to ensure food security of 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, such reform are often resisted by policy-makers because of a fear that the domestic market will be exposed to fluctuating international commodity prices.
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