Abstract

Misbah Nosheen , Attique Ur Rahman3,4, Safeer Ullah and Javed Iqba

The objective of this study was to increase the understanding of the specification and estimation of rice acreage response as well as to provide instruments for agricultural policy analysis. The coefficients of the area response models for respective crops were estimated through the ordinary least squares (OLS) method. The obvious recommendations for policy reform were to liberalize farm gate prices, reduce the state’s role in procurement. Future research should be based on how this might best be achieved. Attention should be given to the conditions that are necessary for the private sector by ways of minimizing price instability. In keeping with structural reforms, output prices need to be transmitted to farmers with least distortion. Price support and control, which cause distortions in market signals and huge fiscal costs, need to be removed.