ABSTRACT
Agricultural price policy is a part of macroeconomic policy which has an influence upon resource allocation, income distribution, industrial production, and trade. In the first section history, current scenario, and way forward of agricultural price policies of Pakistan are presented. Pakistan since her independence in 1947 inherited the policies of government intervention in the crop markets through altering price mechanisms, particularly in case of food grains. Currently, wheat is the only crop for which the government sets support prices. The goals and interventions of agricultural price policy vary from country to country and depend upon the stages of development within each country. In this chapter, regional comparison of agricultural price policies is presented by discussing the Indian economy. The next section covers the international comparison of price policies in order to make a comparison with the South Asia region, particularly Pakistan. Agricultural price policies of the United States and the European Union are discussed in detail. The forth section addresses issues related to taxation and subsidies in the agricultural sector; the final section is about investment in agriculture.
