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Price Interventions as a Part of Living Income Strategies: Lessons learned from piloting a price premium mechanism for basmati rice farmers in Pakistan
Alestig, Mira
Alestig, Mira
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Publication date
2023-03-06
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Discussion paper
Pages
49
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English paper
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<p>Small-scale farmers produce many globally important products such as rice, cocoa, cotton and vanilla. Poverty is widespread among these farmers, and there is an urgent need to increase their incomes.</p><p>A living income – what a household needs to afford a decent standard of living for all its members – is a human right. It is increasingly recognized that paying a living income is the responsibility of businesses. Pricing is a vital part part of this, but raising the prices paid to farmers can be complicated, and many companies still treat it with scepticism.</p><p>This paper presents lessons learned from the piloting of a novel price premium mechanism in Pakistan. The goal of the price intervention, which targeted basmati rice farmers in Punjab province, was to make a meaningful contribution to the incomes of the most vulnerable small-scale farmers, while at the same time identifying appropriate mechanisms to minimize costs to retailers and/or consumers. The pilot indicates that price, in combination with other complementary measures, can effectively contribute to closing the income gap for even the most vulnerable small-scale farmers, but that any mechanism to raise prices must be designed carefully.</p><p>The intervention was part of the wider <a href="https://graisea.github.io/">GRAISEA</a> programme, which supports farmers and food producers in South-East Asia.</p>
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English