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Towards a Free Market: A Blueprint for Wheat Sector Deregulation

Author

Listed:
  • Muhammad Faisal Ali

    (Pakistan Institute of Development Economics, Islamabad)

  • Sobia Rose

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

The wheat crisis in Pakistan accentuates the complexities and challenges of agricultural market management. That is the reason the wheat crop has always been a subject of serious debate. The Minimum Support Price (MSP) policy was one of the key factors, as substantial funds from taxpayers' money have been consumed to continue this policy. However, it has neither helped stabilize the market during crises nor protected the consumers and producers, who are assumed to be the primary beneficiaries. Conversely, flour mill owners, large landholders, or middlemen remained the primary recipients of the greatest gains. Consequently, fixing the MSP has led to unintended consequences, raising concerns about the policy's sustainability, market efficiency, and overall effectiveness

Suggested Citation

  • Muhammad Faisal Ali & Sobia Rose, 2025. "Towards a Free Market: A Blueprint for Wheat Sector Deregulation," PIDE Policy View Point 2025:48, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:pviewp:2025:48
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