Chapter No.

1
Introduction
Agriculture sector of Pakistan plays a dominant part in the economy of country as it
contributes 19.9 percent to GDP and absorbs 42.8 percent of labor force. It is the vital source
of foreign exchange earnings and excite growth in other sector . The government is
concentrating on promoting small and medium range farmers and support small scale new
technologies to increase growth in this sector. According to the 6th Population and Housing
Census of Pakistan 2017, the population of country is growing at the rate of 2.6 percent per
annum(GOP 2018).Due to fast increase in population the demand of agriculture product is
also increased. The recent government is working on developing this sector and in this
linking introduced a number of measures such as crop variation, effective use of water and
promotion of high value crops including biotechnology, decreasing mark-up rates, agriculture
credit enhancement by providing subsidy to fertilizer prices and providing economical
electricity for agri tube wells. In rural areas of Pakistan approximately 70% of total
population lives .With agriculture sector Almost 45% of work force is engaged. To raise the
productivity of agriculture sector of Pakistan provincial government pays attention on priority
bases. For the provision of raw material  to the downstream industry for production
agriculture is a main sector. The ultimate role of agriculture sector is to diminishing poverty,
it also provide employment opportunity which is country really desire. Main Purpose of our
agriculture sector is to diversify it from self-sufficiency to profitability. During 2017-18,
sector of agriculture attained 3.91 percent of growth rate and beat its targeted growth of 3.8
percent and last year’s growth of 2.27 percent. This target is achieved due to higher yields,
striking output prices and supportive government policies, better accessibility of certified
seeds, pesticides, agriculture credit and higher fertilizers offtake. That’s why crops sector
provide better result and observed a growth rate of 3.93 percent instead of last year’s growth
of 0.99 percent (GOP 2018).

Agriculture means, “The science and art of growing of plants as well as the rearing of
animals for food, fiber and some medicinal products to improve the living standard”. In every
field of life agriculture plays an imperative role especially in industrial sector like leather
industry, fuel industry and textile industry etc. In Pakistan total work force is 43.5% and half
of this %age is shared by the women (Ghani, 2012). The total population of 40% is directly
and remaining 60% is indirectly attached with the agriculture. As a part of foreign exchange
agriculture is the main source.
In Pakistan major crops are sugarcane, maize, rice, and wheat. Wheat is the main staple food
item of Pakistan. Mostly countries including India, Australia, Canada, France consumed
wheat as a basic food, there is need to increase wheat production as population continue to
increased, so that we can fulfill the requirement of wheat. In agriculture sector contribution of
major crops are about to be 25.6% and contribution of major crops in GDP is almost 5.4%
according to the financial review of Pakistan. Wheat participate in contribution of
agriculture is approximately 10.3% and in GDP is 2.2%. Rice is food and cash plus crop.
Pakistan creates superb rice which is ideal and like in everywhere throughout the world.
Pakistan have strength in yet because of some inalienable issue we have not abundance on
skill to making send out on a ton of amount of good rice that is in the long run impacts on our
outside trade save. Portion of rice in our farming is practically 3.1% and in GDP is 0.7%. The
Cotton is a money harvest and make crude material for our material industry and commitment
in GDP is practically 1.4%. Sugarcane is additionally a money crop and furthermore
sustenance crop. Our sugar industry depends on crude material of sugarcane. Sugarcane
contribute in agricultural division is 3.4% and in GDP is 0.7%.Our minor yields includes
beats, mustard, gram, jawar, bajra, oil seeds and grain. Minor yields contributing in farming
area is 11.6% GOP (2018).

Table 1.1 Per capita wheat availability in Pakistan

Year 2011 2012 2013 2014 2015 2016 2017 2018

Per capita 252.14 234.75 242.13 259.89 250.86 256.33 266.08 251.07
Availability
(Kgs/annum)

As shown in table 1.1.In recent year 2018 per capita availability in wheat field decreased
around about 5.74 percent.as production of wheat decreased per capita availability also
decreased (GOP 2018).

Wheat is the major cash crop of the world. As compared to other countries Pakistan has 8
largest wheat producing country of the world in 2018-2019. The production is given below
table 1.2
Table; 1.2: Major wheat producing countries of the world
Rank Country Production
1 Eu-27 153,803
2 China 132,004
3 India 100,002
4 Russian Federation 77,009
5 United States 51,627
6 Canada 34,508
7 Ukraine 29,001
8 Pakistan 25,650
Source: https://www.indexmundi.com/agriculture/?commodity=wheat&graph=production

Table 1.3 Production of wheat (‘000’ tones)

Year Punjab Sindh Khyber Balochistan Pakistan
Pakhtunkhwa
2011-12 17738.92 3761.55 1130.32 892.71 23473.41

2012-13 18587.02 3598.77 1257.65 768.12 24211.44

2013-14 19738.94 4002.11 1363.11 875.33 25979.46

2104-15 192281.96 3672.22 1259.93 872.10 25086.11

2015-16 19526.70 3834.66 1400.55 871.36 25633.14

2016-17 20466.35 3910.49 1365.14 931.88 26673.66

Source: Agricultural Statistics of Pakistan, Ministry of National Food Security & Research
Islamabad
As shown in table 1.3 Sindh has yield of 3910 kg per hectare, which is higher than all
provinces of Pakistan. The trend in yield of wheat is shown below table 1.4
Table 1.4 Average Yield of wheat 40 kg per hectare.
Year Punjab Sindh Khyber Baluchista Pakistan
Pakhtunkhwa n
2011-12 27.69 36.29 15.69 21.99 27.49

2012-13 28.89 34.45 17.51 21.44 28.29

2013-14 28.96 36.11 17.79 22.19 28.59

2014-15 27.94 32.58 17.44 22.95 27.59

2015-16 28.59 33.66 18.39 23.08 28.19

2016-17 31.09 37.88 18.49 23.99 30.10

Source: Agricultural Statistics of Pakistan, Ministry of National Food Security & Research
Islamabad
As shown in table 1.4 Sindh has higher average yield of wheat while Punjab stand second in
this list.

Table 1.5 Area under Wheat crop in Pakistan according to provinces

Province Area (million hectare) Percentage of total area
Punjab 6.99 75.7

Sindh 1.17 12.7

Khyber Pakhtunkhwa 0.77 8.3

Baluchistan 0.39 4.5

Source:- GOP,2017
As shown in table 1.5 Punjab has almost 76 percent area under the wheat crop. While Sindh
has approximately 13 percent of area under wheat crop and Khyber Pakhtunkhwa ,
Baluchistan have almost 9 and 5 percent area under wheat crop.

For the purchase of wheat, Pakistan Agriculture Storage and Supplies Corporation and Food
department is responsible at the support prices which is announced by the government. The
support prices are given below in table 1.5.

Table :1.6 Procurement/support prices of wheat

Year Wheat(Rs/Kg)
2011-12 1050
2012-13 1150

2013-14 1250

2014-15 1300

2015-16 1300
2016-17 1300

Source: GOP, 2017

Bahawalnagar is a wheat producing district of Punjab Pakistan. Majority of farmers are

involved in growing of wheat. Major quantity of wheat is used for home consumption, seed
for the next time sowing and for sale in the market to generate income, that’s why wheat is
the main cash crop for the farmers of this area. The land under wheat crop was 359000 acers,
production was 1089.6000 tones and yield was 35 mound per acer in year 2017-2018.
Majority of farmers are involved to sell their produce to middle man instead of procurement
centers. Only a low quantity of wheat is come from farmers to procurement centers because
procurement centers are located at high distance. According to procurement center 192000
matric tones procured from district Bahawalnagar. 205 centers are working in Punjab under
Pakistan Agricultural Storage and Supplies Corporation (PASSCO). It has 12 procurement
centers in different areas of district Bahawalnagar. Majority of farmers supplies their produce
to commission agents while low quantity of wheat is procured by government institutes.
Table: 1.7 Area, yield and production of wheat in district Bahawalnagar
Years Area(Ha) Yield T/Ha Production(tones)

2011-12 386000 3.28 999600

3.29
2012-13 386500 999700
3.31
2013-14 394000 100102

2014-15 384500 3.19 979650

2015-16 416000 3.39 100159

2016-17 425000 3.48 110145

In Pakistan, wheat is cultivated from long time . Pakistan is at the position of 4 th in the
production of wheat in Asia and also got 11 th position in the World. Wheat is the primary
food crop of the world. Its cultivation started in Neolithic period. Bread wheat is first start
cultivating from Nile valley by 5000 B.C. and other region of world. The wheat is staple food
of old civilizations of western Asia and Europe. Since agriculture began, wheat is the chief
source of breed for Europe and the Middle East. Approximately 70.5-80.7 million tons of
wheat is consumed in a year. There are more than 200 flourmills in Pakistan having crushing
capacity of 15 million tons (Choudary and Ali, 2007). Human being use wheat as a food. It is
full with calories, vitamin, proteins and minerals. Wheat is the most chief food of the World.
In the area of Pakistan and India wheat is used as chapatti . Many pastry products are made
by wheat. There are two major varieties of wheat, one is hard variety which is used for flour
of bread and for pasta while, the other one is soft variety which is use in cake flour. Wheat is
also used for livestock, the low quality of wheat and by products are used for them . it is also
used for the fabric of textile and slight amount of wheat is used in the manufacturing of
coffee. Wheat is major crop for all over the World specially for Pakistan . Including Pakistan
and majority of population from all over the world wheat is a basic cash crop. (Stewart et al.,
2007)

Wheat is the major principal food and main crop of Pakistan. Punjab provide major share in
wheat production. About 1,413 million hectares area is cultivated wheat. The production is
61,968 million tones. The average per hectare yield is 2414 kg. Wheat crop yield is low; we
only get 70.8 percent of inherent potential. By increasing per hectare yield we can increase
wheat production. Due to rapid increase in population, it is crucial for us to increase
production of wheat (Gurmani et al., 2006).

From farmers to end consumer agriculture product flows through many actors . In marketing
system of products all the actors are interdependent as well as interlinked with each other and
every actor adds some value. Every agriculture product has its own marketing system.
Marketing is a principal concept which include three main categories. (1) Market
segmentation; it mean according to their specific need dividing the markets into different
similar segments. (2) Target market; in the 1st step following possible brainstorming segments
and select a market, and then targeting in the 2 nd step. (3) Positioning; in what way the
targeted market of a company needs to observe its product or brand in a specific location or
area. In a wide sense marketing of agricultural products have four main approaches which are
also known as 4Ps: i) Product ii) Price .iii) Place .iv) Promotion (Annie, 2002).

The term agricultural marketing is made out of two words agriculture and marketing.
Agriculture in the widest sense indicates exercises which are used for the operation of
natural resources for human welfare, for example. it includes all the vital movements of
production. In any case, for the most part, it is used to mean developing and/or raising crops
and domesticated animals. To the purpose of utilization advertising shows a progression of
exercises involved in moving the goods from the purpose of generation. It included in the
production of time, spot, structure and ownership utility it incorporates every one of the
exercise. It includes all the operations by the investigation of agriculture marketing, and the
organizations leading them, included in the development of farm produced nourishments, raw
materials and their firms (Marothia, 2007).

A good marketing system transmits the commodity from the producer to consumer through
the shortest possible route and at least possible cost . Agriculture marketing has double part to
play in the input and also output segments. Even so, there are a few issues which bring about
their poor execution. In the primary division non-accessibility of inputs at basic times is a
major issue. In a harvest season there is a basic time when fertilizers, pesticide and seed are
required to be employed. At this time input suppliers generate simulated scarceness to build
its cost and glean high benefits. The farmers need to buy the input at high costs generally all
their previous investment would go to squander. Wholesalers and retailers likewise attempt to
expand their benefits through unlawful practices such as debasement particularly in
fertilizers, pesticides and seeds (Dawn, 2007).

There is no free stream of data about day by day market costs of agrarian wares. Farmers
(particularly littler ones) have low access to market data and low knowledge about how to
bring low costs of their yield?. there is inefficiency in performing marketing capacities
throughout the supply chain as the marketing expense of agricultural goods are high. Because
of poor post- harvest management, product losses are high. Real reasons for postharvest
losses are Poor and old framework, ineffective evaluating, stockpiling, packaging and so
forth. Poor transportation reduce the attractive surplus as well as break down its quality.

Value chain is made up of many components which play a vital role to bring the product into
last farm of consumer by the addition of value from its first stage to its last and final stage till
its reach to the final consumer. In the marketing channels value adds from its first stage till
the last stage. Different actors take part in the value addition process and bring that product
into it final farm. Growers, Wholesalers, Traders, retailers and consumer all together
construct the value chain (Kaplinsky and Morris, 2000).

The concept of value chain and marketing of agricultural product are more vital because they
play their role in the movement of products and other services from producer to the end
consumer. Due to addition of value level of satisfaction increased. Agricultural marketing and
value chain became tougher due to the variation in season and low shell life of agricultural
products. Before 2004 government does not take part in marketing activity but in 2004 new
ministry was established for marketing system of all agricultural products. The basic role of
the ministry was to develop structure of marketing, intelligence system marketing, circulation
of information and to create the skills for the person to be a good entrepreneur in agriculture
sector. For better production development a well-organized and well sound system is required
(GOP 2018).

Wheat marketing system consists of village shopkeepers, beparies, commission agents,

wholesalers, and processors. The village shopkeeper buys wheat from small farmers. They
sold mostly to beoparies and commission agents. The beoparies operate in the first stage of
wheat marketing chain. They buy from the farmers and traders. Their main function is to
collect wheat into large lots and then sold in the markets. They also deal with other
commodities like rice,cotton, ground nuts etc. The wholesaler collects wheat from
commission agent and other dealers and provide to flour mills. They also stock the wheat to
gain profit and to regulate the supply of wheat over time. The flour mills provide wheat flour,
souji, and maida to consumer.

1.8 Wheat Marketing System in Punjab

Wheat marketing system of Punjab province include several agents from the stage of
production till end consumer. These actors are the primary producer (farmers), traders like
commission agents wholesalers, and retailers, PASCCO, flour mills and consumer of the
wheat flour and wheat.

Punjab is leading in wheat production. The wheat regions range from the barani to rain fed
area of Punjab, The average yield per acre is low than the international standard. Area and
production of wheat in Punjab for the year 2018 was 6402 thousand hectares and 15607
thousand tons, respectively (GOP, 2018), Punjab province has the more area under the wheat
crop, then the other province of Pakistan, The Punjab province have more than 70 percent
share in production of wheat.

Provisional governments, specially the Punjab government, participate profoundly in wheat

markets. As of 2018 there are more than 500 purchase center in Punjab. . Currently the
Federal Government has fixed a target of 5 million tons of wheat procurement for Punjab
from a total requirement of 6 million tons (60 percent). Punjab province procured 4.522
million tons against its target of 5 million tons up till May 2017. In some years the wheat
which is procured from Punjab has been as much as 90 percent of the total.

Wheat trade in Punjab is conducted by the village dealers, commission agents, wholesalers.
The village dealers operate in the first stage of wheat marketing. They buy mostly from
farmers and sold it to the commission agents, wholesalers, and flour mills. Their main
function is to collect wheat into larger lots and then sold in the market. They trade in other
commodities like gram, cotton, rice etc. village dealers also provide credit to the farmers.

Commission agents are the mediators between buyers and sellers of wheat. They found in
city grain market. They take 2 to 3 % commission fee per mound of wheat trade. Their
volume of trade is larger than the village dealers. They purchase wheat from farmers and
village dealers. And sold it to consumers, wholesalers, flour mills, and procurement centers.
They also deal in other commodities like cotton, gram, bajra, sunflower e.t.c.
Main function of wholesalers is to collect wheat from different players and then distribute to
final users or flour mills. The wholesalers are similar to commission agents in commodities
traded, commission fee etc. But their volume of trade is large than the commission agents.
They also store some quantity of wheat in order to maintain the supply of wheat over the
period and obtained profit by selling it at higher price on future date. Village dealers and
commission agents dominate in wheat trade. Each of these traders is constrained to perform
their marketing system at reasonably low cost. They provide low price to the farmers that
have small marketable surplus. While medium and large farmers sell their produce to the
wholesalers or procurement centers.

The flour mills are the important part of supply chain of wheat. The milling of wheat I into
flour is takes place in the private sector. The milling activity uses two kind of technologies
namely the traditional chakkies and modem grinding plant. Chakkies are uses in many areas,
for small scale operations. The consumers are preferred to consume flour made from the
chakkies due to its nutritional value and taste. The modem grinding plants operate on much
larger scale and they also do the washing and cleaning function. Flour mills are produce
wheat flour, maida, suji and bran. The wheat flour, maida, and suji are used by the consumer.
The bran is used in cattle feed. Wheat flour is used to make home made chapaties or rotti.
The maida and suji are used to make bread, cakes, and other bakery products.

Government procures wheat with the help of procurement centers. For this purpose there
were two departments for the purchase of wheat. First are food department and second are
Pakistan Agriculture Storage and Supplies Corporation (PASSCO). These departments
purchase wheat at the support price, which are announced by the government and this year,
the price was 1300 per maund of wheat. The procurement of wheat starts on 15 April in
Punjab in 2018. The purpose of this intervention in the wheat market was to support the
farmers community by providing reasonable price of their produce and the general public by
stabilizing the supply. The Food Department provides wheat on quota basis to each flour mill
on an issue price which was Rs. 1250 per maund of wheat in 2018.

Final user of wheat is household. Most households spend a substantial part of their income on
food where wheat still is the largest single item in the food budget of an average household.
Its weight is much larger in the budgets of low income group. The rural households satisfy
their consumption from their own production, while urban consumers purchase wheat from
retail shops.
Figure 1.8.1 : Wheat Marketing System of Punjab

Farmer

PASCCO and Commission

Private Trader
Food agent
Department

Floor Mill Wholesaler

Consumer

There is need of more reforms in wheat distribution sector. The government support price act
as a ceiling price, because of inter district ban on the movement of surplus wheat. Subsides
imports of wheat not only cause depress price and high fiscal cost to government, but also
basis of sluggish increase of production. Procurement and storage structure causes corruption
and disappearance of wheat stock from the ware houses. Due to lack of competition in
transport contractors causes corruption in the form of expenses of transportation which is not
occurred. Due to lack of understanding and research, our enforcement institution are not able
to minimize the negative effective of government intervention in wheat sector (Lohano et
al.,1998).

Only a small proportion of procured quantity of wheat is come from farmers because the
procurement centers are located at great distance. The procurement centers also lack of
storage facilities and funds. So the farmers sell it at low prices in village. The village shops
and bieoparies give the same price of good quality and average quality of wheat. They also
overweighed their produced (Nadeem and Qumar, 1998).
 The marketing activity of wheat is very important because the urban and rural population
depends on the provision of food through the market. The efficiency of wheat marketing is
crucial for farmers income and consumer welfare. Basic information regarding the various
marketing practice is necessary to bring about improvement in existing wheat marketing
system of district Bahawalnagar. The study planned to achieve the following objectives.

1. To analyze the existing marketing system of wheat in district Bahawalnagar.

2. To estimate cost and profit margins of the market actors in the district Bahawalnagar.
3. To assess problems in market faced by the various marketing actors.
4. To suggest recommendation for improvement in wheat marketing system.
Review of literature
Rauf et al., (1990) narrated that because of the wheat was contained a central position
in our diet, Government and experts in agricultural sector were emphasized on the instanced
the wheat production, hut no one was thinking about the decrease in the significant post-
harvest losses of wheat grains, There were no plans or policies were made tv' handle this
problem, So at the farm level, a significant proportion of wheat production was loss, I ‘or
data collection, 60 farmers were selected from 6 villages of Sheikhupura district. A well
designed and pre tested questionnaire was used for data collection. The aggregate losses of
wheat grains were 71, 31tons or 1.4 % of total production. If we generalized this result at
Put\jab level, then in 1988 production of wheat was 9203.80 thousand tons, losses was 128,85
thousand tons at the farm level, and the worth of this loss was Rs,2, 73,806,25, So this loss
was due to out dated technology at the farm level for harvesting and operation, Me concluded
that although this loss was not eliminated, hut it could be minimized with the introduction of
new technology and in this way we can increase wheat production.

Nadeem, (1995) examined the wheat marketing system in Punjab with particular reference to
Multan division. The data were collected from two districts (Sahiwal and Vehari). He studied
on 20 farmers, 16 village dealer, 8 commission agents and 4 procurement centers, making a
grand total of 48 respondents. The data were collected by personal interview. He concluded
that 61.79 percent area was under wheat and per acre yield in that area was 31.34 mounds.
Out of total production 15.91 % used for home consumption, 17.20 % for farm consumption,
1.09 % for charity and 65.75 % was sold in the market. 70 Domestic1non-feed1 consisted
of1making1flour.1Per1capita1annual1consumption1of1wheat1flour1was1about11491Pounds
1in1the1United1States1and11891pounds1in1Argentina.1Twelve1and1two1percent1of1outpu
t1in1the1United1States1and1Argentina1were1used1for1feed.1The1study1describe1the1whe
at1is1used1for1making1wheat1flour.1The1excess1production1is1exported1to1other1deficit1
wheat1producing1countries.

Lence, (2000) narrated that wheat was used for export, home consumption and non-feed in
Argentina and United States. They exported higher portion of their produce. Two third part of
wheat produced exported from Argentina and almost half quantity of wheat which is
produced from Unnited State were exported to others countries. Domestic non-feed used for
making flour. Annual consumption of wheat per capita was about 150 pounds in the U.S.
while in Argentina it was 189 pounds. The study explained that majority of wheat produce is
used for making wheat flour according to their consumption requirement . The remaining
production is exported to other countries which are poor in wheat production.

Iqbal et al (2001)., examined wheat production in irrigated Pakistan. Primary data collection
was done in this study in which 634 wheat growers were included. The sample concluded
rice-wheat, cotton-wheat and mixed cropping framework of Punjab and Sindh region. The
result shows that the part of the imperative variable in charge of higher wheat production
amid 1999-2000.elements distinguished are similarly useful in accomplishing long term and
short term higher profitability of wheat objectives.

Ullah et al.,(2002) explored that growers are cost responsive and guaranteed predominance of
reasonable yield and info costs is fundamental for conservation of farmers motivating force
for higher creation of wheat. Further, expanded manure application influenced on-ranch
business decidedly. Increment in the territory under wheat crop fundamentally builds the
wheat supply, benefit and impact the interest for the variable data sources. Then again
instruction level of the cultivating family unit has additionally a positive yet inelastic impact
on the supply of wheat, benefit of the farmers and interest for variable data sources. The
aftereffects of the investigation recommend that the legislature ought to finance manure costs
to empower its application. Expanding compost application won't just build yield yet will
likewise empower on-farm business. So also, bringing more zone under wheat development
will build creation and on farm business.

Henneberry, (2003) examined that the provision of wheat to all consumer and supply wheat
at reasonable and affordable price was the aim of U.S. Government. For this purpose
government intervene in the wheat market. The government exports the excess production
and in this way government stabilized the price of wheat. Wheat marketing was a complex
system in United State. Normally farmers produced wheat, they sold to government centers
or to local elevators, then wheat move from local elevators to terminal elevators, and regional
or terminal elevators to export elevators, and then to flour mills, or feed mills. The study
provides the detailed marketing of wheat in United State of America.

 Smale et al., (2003) explored that spatial dissemination of present day assortments, and the
qualities they epitomize, has monetary worth since it influences crop profitability from year
to year. Since farmers pick assortments dependent on discernible characteristics as opposed
to the qualities they can't see, an initial phase in understanding the spatial dispersion of
qualities is to all the more likely comprehend the determinants of the spatial circulation of
assortments. In this paper, we have built spatial assorted variety records from territory
disseminations of present day wheat assortments in Australia and China. We estimate that
components clarifying variety in these records are identified with farmers' interest for
qualities and the supply of assortments, given physical highlights of the generation condition.
We test these speculations utilizing diminished structure conditions for three ideas of spatial
assorted variety, lavishness, bounty and equity, utilizing Zellner's apparently random relapse
(SUR). Spatial decent variety markers and examinations of this sort, if all the more
completely created and focused to address explicit arrangement issues, may help with
observing harvest hereditary assorted variety or 'shelter' targets related with the dissemination
of some hereditarily altered yields.

Madeley, (2003) detected that wheat was the basis food of Pakistan. In production of wheat
majority of farmers were involved. They used wheat for domestic consumption and
remaining produce was sold in the market that’s why it is also known as cash crop. About
75% of wheat was consumed in the country which were 22 million tones. The government
tried to maintain 4 million tones of buffer stock. Due to food security issues in Pakistan
government procured large part of production. The homework gives point of wheat finding in
Pakistan.

Khan1et1al.,
(2003)1narrated11that1wheat1was1the1most1strategic1commodity1in1Pakistan1and1majorit
y1of1the1wheat1growers1are1poor1farmers,1their1crop1ought1to1be1handsomely1protecte
d1by1the1government.1In1America,1farmers1are1less1than12%1of1the1workforce.1The1ki
nd1of1support1price1regime1that1has1been1exercised1in1Pakistan1is1more1close1to1the1p
ractice1of1procurement1price.1In1this1system,1there1is1no1tangible1restriction1on1the1sal
e1of1the1produce1by1the1farmers1in1the1free1market1unless1the1government1declares1to
1buy1at1the1fixed1procurement1price.1Such1a1policy1of1procurement1was1followed1in1P
akistan1afterit1gave1up1its1policy1of1monopoly1purchases1of1wheat1at1the1end1of11980
s.

Badar and Din (2005) analyzed the promotion of old-style and advanced growers and wheat
production in the region of Faisalabad. Current observation was resumed to Faisalabad area
and depend on primaryy data collection. Along with the main major roads going outside the
city of Faisalabad 5 advanced and ten old-style farmers were chosen. Through questionnaires
material was collected which include questions which are according to production and
marketing rehearses. By implementing simple statistical technique average, percentage &
frequency distribution through SPSS we examined the information. Information showed that
advanced growers propagated wheat in time and they used more seed ratio. Seed drill
technique was much more adopt by progressive farmers instead of traditional farmers. Higher
cost of fertilizers particularly DAP, delayed installment and low cost of wheat of wheat were
the primary marketing associated complaints removed both by the traditional and progressive
growers.

Anwar et al.,(2005) examined that similar preferred position and intensity of the wheat crop
both at the fare and import level. The Policy Analysis Matrix (PAM) was chosen as the
investigative structure. The yield spending plans were created based on monetary and
financial costs in two noteworthy areas, Punjab and Sindh and afterward for Pakistan. It was
inferred that during the examination time frame Pakistan has no near favorable position in the
creation of wheat at the fare equality value in this manner has lost its aggressiveness in the
open market. The expense of creation of wheat is a lot higher in the nation that makes the
Pakistani growers unfit to contend on the planet advertise. Notwithstanding this high
transportation charges and low quality of wheat likewise expanded the advertising costs. On
import equality value Pakistan has a relative preferred position in creating wheat as an import
substitution crop.

Hussain et al., (2006) described that wheat was the most growing and staple food of Pakistan.
They observed that the average yield of wheat was less than the potential. They developed the
wheat production function and forecasted the wheat production in next fifteen year of district
Jhang. The data was collected by 150 farmers, through personal interview. They used OLS
regression technique in order to develop a model. The results illustrated that seed rate per
acre, fertilizer use, and number of irrigations had.

Aujla et al., (2007) stated that there was incredible breadth in improving the profitability
and harvesting the fare capability of foods grown from the ground in Pakistan to annihilate
neediness in provincial zones. Ideal utilization of different basic sources of info like FYM,
compost, plant insurance measures is most extreme essential to accomplish higher efficiency.
The examination on plantation the board, wheat efficiency and showing ought to be fortified
in a joint effort with the ranchers to build profitability. The misbehaviors in sources of info
promoting ought to be zero-endured by regularizing data sources showcasing framework.
Severe laws ought to be actualized to dishearten the showcasing of debased data sources.

Sher and Ahmed (2008) investigate wheat production in Pakistan according to future
prospects. For findings Cobb-Doug1as production function is used. The aftereffect of the
observation establish the most imperious variable for anticipating wheat production per
hectares are wrapped productivity, labor influence, consumption of tractors, and entireness of
the condensation increased the yield.

Bayeh, (2010) explored that the current Bread wheat creation & marketing were entwined by
numerous imperatives identified with low compost supply, quality decrease because of sifting
on the ground and blending the seeds with soil and excrement, Septoria, growing, present
gather misfortunes due on weevil, absence of street or transport, low yield value, high
transport cost and absence of storerooms in the investigation region. In this way, the
administration and other concerned bodies should give due consideration to advance better
creation and showcasing frameworks in Bure region just as Production of genotypes which
have satisfactory yield and quality

Mirzapour1et1al.,1(2011)1examined1another1strong1multitarget1total1production1arranging
1(RMAPP)1model1was1Presented.1A1portion1of1the1highlights1of1proposed1model1are1a
s1per1the1following:1(I)1Considering1most1of1store1network1cost1parameters,1for1examp
le,1transportation1cost,1stock1holding1cost,1lack1cost,1creation1cost1and1human1related1
cost;1(ii)1thinking1of1some1as1regards1as1utilize1Ent,1rejection1and1laborers1efficiency;1
(iii)1thinking1about1the1working1dimensions1and1plausibility1of1staff1preparing1and1upd
ating;1(iv)1considering1the1lead1time1among1providers1and1destinations1and1among1loc
ales1and1clients'1zones;1(v)1Cost1parameters1and1request1changes1are1liable1to1vulnerab
ility.

Gandhi1et1al.,
(2004)1analyzed11the1advertising1of1wheat1in1India,1concentrating1on1the1private1show
casing1framework,1the1promoting1productivity1and1quality.1Wheat1is1presently1a1notew
orthy1nourishment1staple1in1India,1pivotal1to1India's1sustenance1economy1and1security.1
With1creation1achieving1701to1751million1tons1and1a1huge1interest,1India's1wheat1econ
omy1is1the1second1biggest1on1the1planet.1The1productivity1of1showcasing1is1vital1to1r
ancher1earnings,1customer1welfare,1just1as1government1spending1plans1and1the1econom
y.1Significant1changes1are1occurring1in1the1promoting1of1wheat.1The1investigation1find
s1that1the1ranchers1now1perpetually1sell1in1the1closeby1essential1markets1instead1of1to
1town1brokers.1The1rancher1selection1of1assortments1is1presently1getting1to1be1market1
situated1with1quality1and1market1acknowledgment1getting1to1be1as1significant1as1yield.
1The1assessed1normal1complete1advertising1cost1of1wheat1is1observed1to1be1of1the1req
uest1of1Rs.12661for1every1quintal,1and1in1this1vehicle1has1the1biggest1offer1of1401per
cent,1commission1and1expenses1make1up1251percent,1and1wastage1another1151percent.1
At1the1point1when1contrasted1with1the1customer1rancher1value1spread,1the1advertising1
costs1represent1741percent1of1the1spread,1leaving1261percent1for1edges.

Ghafoor et al., (2005) predict three elements wheat production, wheat procurement and
import that influenced Pakistan’s wheat economy. He also calculated the growth rate. From
1970 to 2003 time series data used by them. They create a measure that displayed a
association among imports and wheat finding. Import decreased due to increase in
procurement of wheat by the government the large procurement inferior the wheat imports.
They resolved that demand of the country will be fulfilled by stopping the rustling of wheat
from Pakistan to Afghanistan; but also provide foreign earnings which we get through import
of the wheat.

Hassan and Ahmed (2005) premeditated the specialized productivity in wheat creation in
blended trimming framework. The innovative wastefulness effect were seen to be a straight
capacity of different firm specific factors. The results of wilderness model demonstrated that
wheat creation would be extended by growing wheat domain, weedicide, improvement and
compost utilized. The outcomes of wastefulness effect model exhibited that the mechanical
wastefulness could be decreased by planting the yield in time, extending preparing of
agriculturists, by giving credit to the growers and planting the collect by drill strategy . In
inefficiency impact model individual effect of a portion of the variable were non-critical.

Goodwin (2005) found that in Canada wheat was an important crop. More than 10 million
hectares it was grown. More than 70 countries consumed that wheat. Because of its
importance government gave special attention to the marketing and production of wheat.
Canadian wheat board was established for the marketing of wheat. This organization is
directly controlled by growers. It deals with wheat and barley. In order to make different
products wheat and barely was processed. For wheat flour high quality of wheat is used. And
for animals feed low quality of wheat was used. This study describes the uses of wheat and
marketing system of wheat which is used in Canada.
Khan and Schimmelpfennig (2006) indicated that support price show the minimum price set
by the government for a product that in case of price less than the support price in the market,
the government purchase the commodity at the announced price. At the start of every season
government announced the support prices for wheat. This was the guaranteed minimum
prices at which government purchase wheat from the farmers. By the ministry of food
committee established which set the prices of wheat. The government could purchase the
wheat in excess support price, depending on supply and demand of wheat in the market. The
Pakistan agricultural storage and supplies corporation purchase wheat from the farmers. In
order to stabilize the supply of wheat in the market they also hold a stock. Trading
corporation of Pakistan also imported wheat from international market if the production was
less than the demand of the wheat. The study shows the work of PASSCO in Pakistan.

Ahmed, (2009) stated that in Pakistan wheat was an significant and main crop. Including seed
requirement the net annual need of wheat was 22 million tones. We could not achieve our
prerequisite for our population due to increased cost of input and shortage of water. For
increase in wheat production we must provided crop loan, supply fertilizer, weedicide and
specialized seed at low prices We can limit the capacity misfortunes by giving preparing to
general individuals and developing storerooms.. The observation point out how to maximize
the wheat production in the country. He recommended that if we supply input facilities and
loan for the crops to the farmers at low prices than there is a chance of increase in production
of wheat.

Ozkan et al., (2011) explored that exogenous consequences for wheat amount provided in
Turkey somewhere in the range of 1960 and 2009. Time arrangement investigative
procedures were utilized to undermine the quantitative impacts of cost and non-value
components of wheat generation. Likewise, it was discovered that wheat supply is for the
most part influenced from the earlier year's supply conditions. Being a noteworthy staple,
cost has constrained effect over the generation choice of farmers. Generation region impacts
over the supply by means of one year delay, which is likewise sign of the circumstance that
wheat creation choices are offered preceding the genuine generation time frame. Wheat
supply is cost inelastic both in the short and long run. The pattern ascend in the wheat supply
is connected with the populace change and the costs are not utilized as a fundamental pointer
for supply choices for wheat creation.
Raza et al., (2012) entitled that agriculture contributes the huge effect over the financial
development of Pakistan is acknowledged" appearing there is the positive connection
between the GDP (DV) and the sub-divisions of Agriculture (IV), Results proposes the
significant harvests have around 31% offer over total agribusiness share, Minor yields have
less yet not least 11% offer, animals' have immense bit of offer around 55% offer,
correspondingly fisheries have 2%and residual extent involves ranger service that shows
positive connection.

Ali et al., (2013) focused on forecasting production of food grain using ARIMA model and
its requirement in Bangladesh. The purpose of research was to measure requirements of food
grain for the population. The production of food grain like wheat, rice, maize and combine
(wheat and rice) was measured in future. The data was used for the time period of 1971 to
2006. The statistics was collected for secondary resource like Bangladesh Bureau of Statistics
(BBS) and Dhaka office. The ARIMA (autoregressive integrated moving an average) model
was used for forecasting the food grain in the year 2010 in Bangladesh. The study forecasted
that the productivity of rice would reach to 33542 TMT in 2010 in Bangladesh. Therefore
production of wheat reached to 972.0 thousand metric tons in 2010 in Bangladesh. The total
production of all food crops would be 35532.28 thousand metric tons in 2010 in Bangladesh
while if we consider the food requirements it would be 26377.1 in the year 2010 in
Bangladesh.

Ahmed et al.,(2003) examined that the Middle East and North Africa is the biggest shipper
district of wheat with per capita utilization higher than worldwide midpoints. Agricultural
asset requirements and developing populaces in the district drive expanded reliance on wheat
imports. The 2007-2008 sustenance emergency and resulting value climbs uncovered the
region’s defenselessness to worldwide value volatilities, reestablishing calls for independence
arrangements. Nations have embraced different techniques to check these value spikes and
secure plentiful wheat supplies. These procedures included expanding sponsorships, value
controls, refreshing storerooms, and putting resources into abroad yield generation. By
utilizing the GVC system to comprehend the structure of the wheat business in five key
MENA nations, the examination uncovered the solid job that legislatures keep on playing
over the chain. This can be ascribed to the basic job that wheat plays in nourishment security
and the strength of these nations. Despite the fact that particular technique fluctuates starting
with one nation then onto the next, they predominantly center around discovering approaches
to moderate water deficiencies, expanding and improving capacity, differentiating supply,
and guideline. Our next phase of investigation will take a gander at the cooperation between
the worldwide firms and establishments in these nations in more noteworthy detail to
distinguish worldwide and household techniques in checking sustenance instability concerns.

Khan, (2014) analyzed that government needs to overcome Pakistan’s overdependence on the
wheat economy so as to deal with the issue of food security. The challenge is to intervene
more effectively in the value chain and devise new instruments to achieve this end. It sought
also to explore the possibilities associated with other staple foods, such as maize and
sorghum, as possible substitutes to wheat; and or encouraging experimentation with
innovative processes of wheat flour preparation such as mixing wheat with cheaper but
nonetheless wholesome cereals. Secondly, intervention is long overdue to ensure the
sustainability of the wheat economy through structural reforms such as land organization,
stable input markets, functional government policy making apparatus, and efficient
institutional frameworks to support and implement a new vision for the future. Lastly, the
political foundations tangled in the process of policy making need to be more responsible and
accountable in their decision making. The challenge, however, is that each of these three
forms of intervention are less about economic policy and more about achieving political
change in the context of powerful vested interests and in highly volatile and complex times.
This will not be easy, unless a committed political leadership is emerged one that takes some
hard but effective policy decisions.

Heckman2et2al.,2(2014)2stated2that2an2increase2in2observed2supply2chain2disruptions2h
asraised2awareness2for2supply2chain2risk2management2in2recent2years,22unfortunately,2t
he2understanding2of2what2exactly2is2meant2by2supply2chain2risk,2which2information2sh
ould2be2monitored,2and2how2risk2management2and2mitigation2can2be2designed2in2the2l
ight2of2these2risks2is2heterogeneous.

Zulfiqar and Hussain (2014) Forecasted wheat production gaps to assess the state of future
food security in Pakistan. In this study time series data was used for the period of 1951 to
2012. The data was collected by Marketing Information Service, Economic Surveys of
Pakistan, Handbook of Pakistan Economy and Agricultural Statistics of Pakistan. The
research used ARIMA model for forecasting the production of wheat in Pakistan for the
period of 2013 to 2025 and used 125 and 150 kg pre-capita per-annum consumption levels.
The study concluded that 95% food was produced with 44.7% labor force in Pakistan. The
wheat contributed 50% per day per capita daily calorie. So, there was a need to make proper
policy to fulfill the current as well as future requirement. The wheat was enough for current
consumption but population was 31% increase in 2025. The gap increased about -0.17
million tons to -0.50 million tons between production and consumption in 2013 to 2025 at
125 kg/capita/annum level. The gap increased about -5.0 MT to - 7.0 MT between production
and consumption in 2013 to 2025 at 150 kg/capita/annum level. This gape caused by high
food insecurity in Pakistan for the coming years.

Dharmaratne (2014) explored that to promote agricultural growth and maximize benefits
from agricultural and food products in the face of the challenges arising from economic
liberalization and globalization. The main objective of an efficient agricultural marketing
system should be to ensure that a greater share of the ultimate price of the agricultural
produce goes to the farmers. In the context of the increase in the production of agricultural
commodities and the fast changing economic scenario, issues relating to the development of
agricultural marketing have assumed great significance. Some of these issues are
development of infrastructure for agricultural marketing, establishing sound linkages between
production and marketing, development of market intelligence for the benefit of farmers and
consumers, promotion of direct marketing, application of Information Technology in
marketing and encouraging public, private and cooperative sectors to make investments for
the development of agricultural marketing.

Chattha et al.,(2014) observed that the traditional grain storage structures are not suitable for
storing grain for long periods of time because these structures are unable to protect the grains
against all possible causes of damage. An urgent need for an efficient wheat grain storage 271
Chattha and Lee Int. J. Bio.sci. 2014 method at the farm level was identified through
investigating the problems associated with their storage structures to maintain quality and
quantity of wheat during storage until consume or sold to the market when the prices
increase. The structure that can best maintain the quality of the grains over the periods of
storage time noted must be designed.

Dagar (2015) explored that market information is an important facilitating function in a

marketing system. An efficient marketing information system can manage timely delivery of
product, reduce marketing costs and increase production and productivity and make the
market healthy. The existing practices of Marketing information systems generally emphasize
only the collection of selling price of different agricultural commodities, volume of arrival
and source of origin. It should be noted that farmers are interested, not only in current price
information, but also in marketing issues like waste generating problems and demand
forecasts. Many institutions have attempted to provide market information but these efforts
are often not coordinated. As the socio-economic environments continue to change and the
private sector actors are becoming the major providers of services previously managed by the
public sector, a properly established and well-coordinated agricultural information system has
the potential of promoting free trade based on an open, transparent and competitive
agricultural marketing system and could serve as a decision support tool for farmers, traders,
and policy makers.

Umar et al.,(2015) narrated that the wheat markets were unidirectional It is concluded that
long distances between markets, different geographical locations and poor road and transport
infrastructure cause slow price transmission among market prices. This study also elucidated
the condition of other commodity markets and industries. This necessitates further research to
identify the exterior and interior aspects such as market structure, government strategy and
self sufficient production, product features and utilization concerning market integration.
Government should take steps towards policies that enhance market efficiency so that the
issues related high food prices and food insecurity can be handled.

Ali et al., (2015) examined that the results shows that in Ahmad pure East Tehsil, the total
cost of wheat production is positively influenced by output whilst the cost of cotton crop is
affected negatively. However, in Yazman and Hasilpur Tehsils, the cost production of both
cotton and wheat crops are increased as output increased. In Bahawalpur Tehsil, the cost of
wheat crop is negatively influenced and the cost of cotton is positively affected by the
quantity of output. The reasons of negative effect on cost might be occurred because the use
of low cost input i.e. organic fertilizer instead of chemical fertilizer and better management of
labor and judicious use of available resources in the cropped area. It is also observed that
these farmers have their own farm machinery (cultivator, harrow and tractor etc.) and
adopt the extensive/horizontal farming system at their farms.

Abdullah et al., (2015) explored the marketing structure, marketing margin spread among the
marketing intermediaries engaged in the wheat marketing chain. In addition to this the
bottlenecks faced by these marketing channel members were also sort out. The finding of
study revealed that the rice marketing chain comprised of producers, beoparies, commission
agents, miller, traders, wholesalers, retailers and finally the consumers. Each marketing
channel member performs specific task against which he charges his profit. The present study
explored that the high cost of inputs, water shortage and lack of appropriate loan at less mark
up rates are production problems and lack of bargaining power, support price and
accurate/timely market information are the marketing problems for farmer’s point of view.
The high cost for inefficient transportation means, adulteration of low quality rice varieties
with good quality rice varieties by farmers, lack of storage space and frequently instant
demand of credit by farmers are core problems faced by commission agents. The rice miller’s
important problems include as long power shortages, high cost bearing on the import of
modern machinery, separation of good quality rice from adulated low quality rice and
imposition of heavy taxes by government. The traders reported their problems as high cost
for long distance transportation across the country, huge investment on the procurement of
rice in bulk quantities, constructions of godown and high labor wages. In the light of the
results of study, the following specific recommendations are suggested to improve the current
domestic rice marketing structure. 1-The farmers should be well informed about market
information and they should be encouraged for direct marketing by selling their produce in
rice mills at competitive prices. This will help to increase farmer share in consumer rupee. 2-
The provision of agriculture credit on easy terms & conditions and at low mark-up rates can
be very useful to enhance farmers self sufficiency and help in curtailing the role of certain un-
necessary middlemen. 3-To promote the agriculture industry environment the importation of
latest machinery and spare parts can be encouraged by exempting import duties. The
uninterrupted supply of electricity to rice milling industry at reasonable price can be very
helpful for the industry to continue the processing of paddy smoothly. 4-The market
regulation wing of relevant ministry should safeguard the interests of farmers as well as
consumers. The provision of effective law /policy is needed to be implemented in its true
spirit to keep a healthy and fair business atmosphere. 5-There is also need of imparting the
training to all rice marketing channel members in accordance of global rice marketing
demand patterns.

Do et al., (2015) explored that nearly 70 percent of the world’s wheat is harvested during the
May through August time period. Most of the remaining 30 percent is harvested in April,
October, November, and December. No wheat is harvested in February, and an insignificant
amount of wheat is harvested in January and March. By the end of September, 92 percent of
the world’s wheat marketing-year supply is known. By the end of September, marketing-year
wheat use is also mostly known. All that remains is for the market to distribute the wheat in
storage during the time period October through May when the U.S. harvest begins. The
market requires that some wheat be maintained in storage and in the pipeline. Thus when
stocks are relatively low, prices may react to expected production. U.S. wheat prices tend to
be the lowest in June and July (harvest) and peak in October through November. Most years,
the market price offers a profit for carry (storage and interest) between June and October.
After October, most of the world’s marketing-year wheat is in storage. Thus, the market only
has to offer a price to entice owners to sell a storable commodity

Zuberi et al.,(2016) find out the engaging diagram of the market actors and work associated
with these intercessions, and an examination of the qualities and difficulties of the different
agri-sustenance worth chain approaches, with the goal of giving knowledge into the
capability of nourishment based worth chain approaches in handling undernutrition. The audit
sets out the reason for an exact investigation which will look at the capacity of three of these
mediations to address undernutrition. The plan of Agri-nourishment intercessions needs to
focus on gendered standards of consideration and market get to. These ends will refine the
diagnostic focal point for the up and coming contextual analysis work to help figure out what
the potential is of the chosen Agri-sustenance worth chain intercessions to convey
supplement thick nourishments to low salary populaces through IYCF. The work area-based
audit will give the establishment to the exact contextual analysis work and fill in as a manual
for the agri-sustenance worth chain mediation scene in Pakistan.

Usman (2016) explored on the assessment of wheat worth chain in Sinana region of Bale
zone with explicit Aims of investigating the market structure-direct execution of wheat
markets; distinguishing the determinants of wheat supply to the market and market outlet
decision of wheat makers, and fixation of wheat advertising framework at various phases of
the promoting chain. Essential information was gathered from 120 ranchers and 37 wheat
brokers utilizing organized surveys. Clear insights and Econometrics models were utilized to
break down the gathered information. Results demonstrate that the fundamental wheat worth
chain on-screen characters in the investigation territory are input providers, ranchers/makers,
constructing agents, wholesalers, processors, retailers, commission specialists and
cooperatives. Market fixation proportion at area level was 88.7% which demonstrated
oligopolistic market structure.

Griewald (2016) narrated that over two decades since the dissolution of a state-organised
grain system in Russia, post-Soviet marketing arrangements remain under-researched.
Official Russian statistics merge data on sales to grain elevators and processors into one
category, leaving out traders altogether. Studies concerning the different types of grain
marketing contracts are also scarce. The present study has shed light on the farmers’
marketing partners and contract arrangements in grain marketing. Based on in-depth
interviews, this study has analysed the alignment between the properties of grain marketing
transactions and the contracts offered by grain elevators and traders. A new institutional
economics approach has proved highly helpful for tackling the task. My major finding is that
the traders’ contracts incorporate uncertainty pertinent to marketing transactions more
adequately than the contracts of grain elevators, but simultaneously discourage grain
differentiation and quality improvements along with being conducive to the traders’ strategic
behaviour. Overall, this research has been intended as an explorative study to understand the
mechanisms behind the existing grain marketing arrangements in a post-Soviet context.
Analysis directly including traders and covering other regions could yield insights into further
stages of agricultural marketing as well as enable a comparative perspective.

Griffith and Watson, (2016) explored that Agricultural markets and marketing policies in
Australia have changed markedly in recent years. In part, this has occurred because of
conscious deregulation of previous price support and stabilisation schemes. Occasionally, the
changes occurred because of poor administration and spectacular default. Previous price and
marketing policies schemes provided differential rates of assistance with adverse
consequences for resource allocation. Pricing arrangements affected marketing institutions
and marketing costs beyond the farm gate, domestically and internationally. The conceptual
basis of agricultural marketing analysis was contested. Private and public roles were
confused, including between Commonwealth and state governments. Key principles of
agricultural marketing and policy development in Australia are illustrated in the paper by
reference to commodities with different histories and economic characteristics: wool, wheat,
dairying and meat. Special emphasis is given to market information and price discovery. In
line with continuing urbanisation and modern logistics, retail marketing of agricultural
products has also been transformed. This has become controversial as a policy issue.
Competition issues, the economic behaviour and performance of supermarkets, and their
effects on farmers and consumers are also introduced in the paper.

Amentae et al., (2016) analyzed that to explore wheat value chain in two districts of central
Ethiopia. Accordingly, major chain actors were identified as: farmers and their cooperatives,
district agricultural bureaus, wholesale and retail traders, millhouses, Injera/ Burden sellers,
hotels and cafeteria, and individual consumers. The nature of relationships and flows of
products, information, and finance were described by open and untraceable chain without any
standing relationships among chain actors. The study couldn’t identify the concept of
mutuality and trust among the chain actors rather a silo mentality where each actor was more
worried about own benefit than the overall benefit to the supply chain. Particularly, farmers‟
relationships with traders seemed scary to the farmers that most farmers claimed that traders
in the area use oligopolistic power to reduce price particularly during the harvesting time.
However, farmers‟ cooperatives stated their major objectives was balancing the price of
wheat by buying during harvest time when price gets down and selling at the time price gets
better .On the other hand, majority of all category chain actors indicated an increasing price
and demand trend overtime, therefore farmers‟ claim were against their expectations. The
relationships between production, sells and land allocation issues in the area indicated that
wheat is not only food crop but also cash crop that supports the livelihood

Alonso and Swinnen , (2016) find that our value chain NRA analysis indicates that the wheat
price policy in Pakistan has generally benefitted flour consumers and wheat traders at the
expense of farmers in 2000–2013, although the effects are relatively small. Results are mixed
for flour mills, though the current wheat release system allows mills to capture part of the
subsidy targeted at consumers. During the 2007/08 food price shock, government
interventions such as the export ban prevented farmers from profiting from the spike in
international wheat prices and led to a large increase in farmer taxation. Domestic prices were
prevented from following the international price surge, resulting in an increase in flour
consumer subsidization. In recent years, government trade restrictions were scaled down,
which is reflected in reduced rent effects for all agents along the value chain: from late 2010
onwards, the convergence of domestic wheat (flour) prices and export parity prices reduced
trader and consumer subsidization and farmer taxation to close to zero. Although the specific
numbers depend on our assumptions on price indicators, this general variation in NRAs
across the period does not change much.

Ahmed et al., (2016) explored various factors that affect farming households’ access to
output market within Punjab province and analyzed their impact on their incomes. The study
inferred that the market accessibility is threatened due to long distances from farm to market,
high transportation cost and lack of market information. Furthermore, these variables along
with other market related variables tend to increase transaction costs for small farming
households which then have an inverse impact on their farm incomes. To improve the living
standard and welfare of small farming households in general and in the study area in
particular, the focus should be on improving and enhancing the scope of extension services
from production side to marketing side. Furthermore, it is suggested that the transportation
costs should be reduced for small scale farming households.

Mattos et al., (2016) explored how producers’ reference prices are formed and adapt over
time, and how they affect marketing decisions. Results indicate that three major variables
influence formation of reference prices: current market price, highest price to date, and price
expectations. Producers tend to exhibit higher (lower) reference prices as current market
prices increase (decrease), and as they expect prices to increase (decrease). They also seem to
pay attention to the highest price observed in the marketing season, which has a positive
relationship with their reference prices. Findings show that producers change their reference
prices mainly in response to changes in current market prices, their own price expectations,
and the general price trend. They also tend to increase (decrease) their reference price when
the current market price increases (decreases), but they adjust upwards faster than they do
downwards. In addition, producers tend to increase (decrease) their reference prices when
they expect the market price to increase (decrease) in the next month. They would also
increase their reference prices in uptrend markets.

Ahmed et al., (2017) narrated that wheat was the vital crop of Pakistan. Farmer grow 82%
wheat in 9 million hectare area which is 40% of total Pakistan area. This report conclude that
wheat was produced 25.2 million metric tons while consumption was 24.5 million metric tons
of in 2018. The resent consumption is 125 kg per capita. In daily calories wheat has
contributed 72%. Farmers keep their wheat production about 60% for seed and for
consumption in Pakistan. In Pakistan food security was important concern. Due to increase in
population it is harder to precure wheat. Through attracting the private sector postharvest of
wheat and maintained supply chain were obtained. For this purpose well investment was
required.

Sahito, (2017) narrated that the wheat markets of Pakistan are very well integrated in the long
run. However, short-run adjustments only occur when price deviates above the threshold.
Further, non-linear threshold co-integration suggests higher adjustment as compared to linear
VECM, where the role of transaction costs is ignored. Higher adjustment coefficients
obtained from the application of threshold model raises the same question of justification for
government interventions, as raised earlier by Mushtaque (25), Dorosh (12) and some others.
Wheat being the major staple food has been center of the extensive and costly government
interventions, because its availability and access to the whole population is linked with food
security, which is a major concern for Pakistan. Estimated results, based on the different
wheat markets of Pakistan, reveal that wheat markets are well integrated, which ultimately
leaves the impression of efficient market functioning. Hence, the expensive interventions of
the government should be reduced and private sector should be allowed to trade wheat within
the country, and invest in the wheat storage and transportation, which will not only reduce the
burden of the economy but will also increase the effectiveness of arbitrage and the efficiency
of market functioning.

Hassan et al .,(2017) stated that prices of wheat vary across marketing chain but the
marketing margins of wheat have been controlled by government intervention policies over
the time. Through government intervention policy regulations in wheat markets; wheat
producers are able to attain maximum return of their produce. The analysis indicates that
marketing margins of wheat at farm-wholesale level always surpass the wholesale-retail level
margins. It is also obvious from the above analysis that in the years of increased production
growth of wheat the marketing margins decline due to decreased prices at all levels of
marketing chain and vice versa. Marketing margins have positive association with retail
prices whereas negatively related with farm gate prices. As increase in farm gate prices
deflate marketing margins and increasing retail prices inflate marketing margins. The analysis
of marketing margin at different levels clearly indicate that marketing margins falls in the
years when private traders allow to enter the wheat market at competitive basis. marketing
margins remained high in years of tight government interventionist policy era (1980-87) and
also in the years of more liberalized policy when most of the wheat procurement was handed
over to private traders (2001). This scenario calls for the moderate wheat procurement policy
by the government in which government control on wheat market remain prominent.
Stabilized wheat prices are the pre requisite to control marketing margins and government
interventionist policies plays a vital role to minimize the marketing margins of wheat in order
to benefit farmers as well as consumers to ensure food security. Public private partnership
can be the most appropriate policy intervention to stabilize wheat prices and to control the
widening marketing margins as introduction of competition will lead to efficient market
functioning. Government should ensure the timely announcement of wheat support prices in
order to reduce farmer’s risk perception of crop profitability and to make them aware of their
due share as a result of selling wheat at government procurement centers.
Azam et al., (2017) analyzed that agriculture is important for Pakistan’s development.
Agriculture sector is a spine of economy and it is the main source to develop the economic
growth of any country. Agriculture not only fulfills the domestic needs but also provide
inputs and outputs for industries i.e., textiles etc. Pakistan is an agrarian country but facing
some problem such as low production, food insecurity, inefficient management in agriculture
sector, and their agriculture system is complex and therefore their economy is going to
slowdown. The competition level in international markets is low due to less production and
poor quality. Therefore, government makes some strategies to improve the agriculture system
i.e., to make an investment for farmers, increase trade, and use natural resources. Pakistan
should improve both public and private sector for the improvement of agriculture system. The
use of modern technology is important for agriculture therefore they should use
mechanization, well-organized irrigation methods, improve packing and quality, make more
dams, introduce agriculture zones and make some other policies. The government should
introduce the modern technology in agriculture regions. In rural areas, large lands are more
able for production rather than small lands and overcome the feudalism issues. These
efficient ways will improve the Pakistan’s weak economy.

Muhammad, (2017) explored that current policy of minimum price prevailing in the country
should be abandoned as although this policy encourages the farmers to produce greater
amounts of wheat but it is unfavorable for the government. Instead of minimum price policy,
input costs need to be reduced to compete in the international markets as higher domestic
prices leave a country internationally uncompetitive and increase the costs to the economy.
The objective of this study was to find suitable price policy reforms. Extensive analysis
revealed that higher cost of production is the main reason for higher domestic prices.
Therefore, the study proposes that controlling and reducing input costs will benefit the
farmers as well as the economy. Subsidies on inputs, especially fertilizers, should be given by
the government as this will reduce the cost of production significantly. Moreover, reduced
input cost for wheat will be the appropriate policy intervention which will lead to achieve
international competitiveness. Thus, the policy recommendation on the basis of the analysis
carried out in the previous sections is that subsidy should be given on inputs of wheat,
especially fertilizers, to reduce the cost of production, as reduction in the production cost will
proportionately reduce the support price.

Hassan et al ., (2017) evaluated the price trends and growth estimation of essential
agricultural food commodities at farm, wholesale and retail levels and comes up with the
conclusion that prices of all selected commodities (wheat, rice, lentil and potato) has
significantly increased during 1981-2010 and witnessed growth of more than 8 percent. The
farm prices of potato experienced highest percentage growth of up to 12 percent followed by
wheat (9.9 percent), lentil (9.09 percent) and rice (8.65 percent). The wholesale prices
witnessed annual growth of 11.0 percent for potatoes, 9.4 percent for each lentil and wheat
whereas 8.65 percent for rice. In case of retail prices the estimated compound annual growth
showed per annum growth in wheat retail prices of 9.6 percent followed by lentil (8.87
percent), rice (8.65 percent) and potato 7.8 percent. The farm, wholesale and retail prices of
potato has the more fluctuating trend followed by lentil, rice and wheat. The observed highly
fluctuating trend of potato is due to it’s perish ability and lacking marketing infrastructure
like transportation, packing and storage facilities. In the light of the study findings it is
concluded that prices of all essential food items are showing high percentage growth per
annum which calls for the policy intervention by the government to control the prices for
coming years. The prices of wheat are somehow stable due to government procurement and
support price measures, such measure are also required for rice as well to ensure its stable
supply in domestic market and also to proper channelize the rice export market to benefit the
producer through direct procurement.

Hassan et al.,(2017)b conclude that growing new high yielding, disease resistant wheat
varieties using CS is the best choice for the farmers to get the highest grain yield and highest
marginal returns. This should form the main scientific and technical message for the
popularization of new varieties that will ultimately contribute to fast tracking replacement of
low yielding old obsolete varieties by new ones. Scientific knowledge generated in this
research supports the use of FSS of new high yielding varieties (for two to three years) as the
next best option considering its built-in genetic traits of economic importance and recent
genetic gain. Use of CS of old and obsolete varieties is not advisable as neither it gave higher
grain yield nor higher marginal return over FSS of new varieties in this research. Creating
knowledge and demand for new high yielding varieties quickly after their release is vital for
varietal popularization. Alternate flexible system of having access of farmers to quality seeds
of new wheat varieties will be a practical means to improve wheat productivity and enhance
food security at the household level.

Chouhan et al.,(2018) narrated that Marketers need to design creative solutions like e-
marketing to overcome challenges typical of the rural environment such as physical
distribution, channel management promotion and communication. The study has been
undertaken to examine the facilities and services available and to analyse the marketing
efficiency of wheat in different grade regulated markets of Madhya Pradesh. The present
investigation is restricted to Sehore (A), MHOW (B), Kalapipal (C) and Katangi (D) grade
regulated markets in Madhya Pradesh. The study reveals that A grade (Sehore) regulated
market was found to facilitate more as compared to the other market but this particular
market was found less price efficient than the other market. All the markets has poor market
facilities with regards to post office, restaurant, fire extinguishers, bank, grading and
analysing laboratory, extension unit, public address system, rest house for farmers, audio
visual aid and garbage disposal system. Hence suggested that these facilities should be
provided in each regulated markets with National e-agriculture market (e-markets) and
bringing them all to one platform so that registered farmers will be able to sell their produce
online in any of the markets where they can get the best price. The e-market also ensured that
intermediaries (and money lenders) do not compel farmers to sell their produce at throw away
prices and their produce should first be bought at the regulated market to be put for auction to
sell, which will get them all a fair price, reduce the chances of middlemen by adding any
extra cost or seeking double commission. This will also brought transparency in the system.

Gohain and Singh, (2018) found that Agriculture is an economic activity subjected to serious
risk of natural conditions and price risk. Some of the important constraints of agricultural
marketing system in the country are lack of infrastructure like storage, transportation, quality
control, packaging, price risk management, cool chains, market led extension, and concussive
framework for promotion of contract farming. The present study was undertaken in the state
of Punjab to study the problems of farmers in the marketing of paddy, wheat, maize and
cotton. A total sample of 180 farmers from 12 villages of six districts was selected for the
study. The sample farmers were further categorized, based on their operational holding, as
marginal, small, semi-medium, medium and large farmers. The results from the study
indicated that the most important problem identified by the farmers in the marketing of paddy
and wheat was the delay in procurement of paddy in the markets followed by the deduction of
payments by commission agents due to higher moisture content in the grains. However, the
major problem during marketing of basmati was the exploitative practices by the
intermediaries followed by lack of public procurement. The problem faced by majority of
farmers in the marketing of maize and cotton was the lack of public procurement of the
produce and lack of remunerative price of the crop respectively.
Tesfaye et al., (2018) identified input suppliers, producers, traders, millers and consumers as
the major actors in the value chain in the study area. The major inputs supplied are seed,
inorganic fertilizer, crop protection chemicals (herbicides and fungicides), farm implements
and farming services. Land and labor are also the most important inputs in wheat production.
The actors identified in the wheat seed sector are ministry of agriculture, national and
regional research institutions, agricultural universities, international research institutions and
plant quarantine, seed enterprises both at the national (Ethiopian Seed Enterprise) and
regional (Tigray Seed Enterprise, Amhara Seed Enterprise, Oromia Seed Enterprise and
South Seed Enterprise) level, unions, cooperatives and seed grower farmers. The study
revealed that the majority of farmers involved in wheat production are small scale farmers.
The productivity of wheat in most of the study area remained low mainly due to low input
use, diseases, and water logging problem. The production segment also depends mainly on
informal seed delivery system, which is responsible for the poor quality seeds and limited
amount of seeds from formal seed system which also has problem of poor quality and less
resistance to diseases. Wheat marketing sector takes two categories, the domestic and
international market. In the domestic sector, private wheat traders are involved while EGTE
is almost the sole importer of wheat to distribute it to selected millers that in turn sell to
specified bakeries. The processing segment is operating by far below their capacity mainly
due to shortage of wheat grain followed by electric power. A permanent increase in domestic
wheat consumption due to population increase and changes in life style resulted in rises in the
prices of wheat products.

Yasin et al., (2018) examined a value-chain perspective on the agri-food systems linking
wheat production to consumption in Pakistan yields important insights for nutrition
programming. Wheat is perhaps the most important food crop in the country, and being the
main source of energy for large segments of the population, it occupies a central place in food
security and nutrition policies. The government has a strategic position in the wheat flour
value chain even though private sector stakeholders are responsible for virtually all of the
wheat grown and processed in the country. The government’s role in the procurement,
storage and transportation of wheat makes it the leading market player that influences price,
availability, and investments in the sector. Although the government also enjoys
administrative and regulatory authority, its strategic position is largely due to the volume of
its market intervention. The persistence of felt as well as hidden hunger suggests that the
existing system has failed to ensure food security for the population, even if it does prevent
shortages and price spirals in urban markets. The system has, however, spawned
inefficiencies, regulatory failures and rent-capture. Nutrition interventions such as wheat
flour fortification need to be part of a broader reform agenda that has food security at its
central objective.

Khapedia et al., (2018) argued on forecasting wheat productivity and production of Madhya
Pradesh, India, using autoregressive integrated moving average models. Wheat was the
important food crops in India. Wheat cultivated on the area of 30.32 million hectare.
Production of wheat was 93.50 million tones and the average productivity of wheat was 3093
kgha-lin India. Time series data was used for period of 1981-2016. The secondary was
collected from Directorate of Agriculture, Department of Agriculture & Cooperation and
Directorate of Economics and Statistics in India. The “Autoregressive integrated moving
average” (ARIMA) was used for forecasting of area as well as production of wheat for the
period of 2017 to 2027. The study forecasted that the wheat production would be increased
18.05 million tons to 21.81 million tons in 2017 to 2027 in Madhya Pradesh. The wheat
production would be increased 92.02 million tons to 106.68 million tons in the period of 2017
to 2027 in India. The wheat was increased 15.3 percent and 15.3 percent in India and Madhya
Pradesh in the year 2027.

Ahmed et al., (2019) wheat crop farmers’ risk perceptions and risk attitudes in the Punjab
province of Pakistan with sample data of 402 wheat farmers. Socio-economic and
institutional factors affecting these farmers were determined regarding their perceptions and
attitudes toward various threats. probit model estimation indicates fruitful findings relevant to
wheat farmers’ farming activities. The farmers’ knowledge and observations regarding wheat
crop risks ranked these threats according to their severity. Farmers were found reluctant to
regard any threat to higher income while the majority of farmers show risk-aversion behavior
concerning wheat crop production. Numerous risks to the wheat crop distracted most farmers
to grow wheat crops due to their facing a loss of productivity and income during the last
decade. Farmers ranked risks regarding the loss of wheat production, with the risk of storm
rainfall and hail a severe one compared to the risks of drought and input prices, with the least
severe one being the risk of wheat diseases affecting production.  Farmers are facing multiple
constraints because of a lack of adequate information regarding climate dynamics, the
inadequate availability of finance and a lack of risk management tools, and such factors must
be given priority importance to maturing and implementing risk management policies at the
initial level. Policy makers and research institutes having priority understanding of farmers’
risk perceptions and risk attitudes, can facilitate classy risk management tools, precise
information regarding climate and crops, access to adequate credit, access to market
information and more off-farm income opportunities which are needed for farmers to
overcome farming management deficiencies regarding risks at the farm level.

Sendhil et al., (2019) explored that commodity prices transmit signal to the stakeholders and
facilitate them to take economic decisions. Analysis on prices indicates that the wholesale
and retail prices were highest in the case of Chennai, indicating the lack of production in that
zone. Price divergence between the retail and wholesale markets was highest in Mumbai
because of lack of production and high consumption demand for wheat and was lowest in
Patna, implying the region is a major production and consumption zone. Monthly price
indices exhibited a clear-cut seasonal price variation peaking highest during the months prior
to harvest because of dearth in wheat supply, and lower after harvest because of high market
arrivals and release of public stocks. The estimated growth in seasonal indices was positive
but found to be less than 1%, indicating price insulation. Co-integration analysis showed the
presence of integration between the wholesale and retail prices in all the markets, but
Chennai failed to exhibit the long-run linear co-movement in wheat prices due to the absence
of production in that zone. The pair-wise Granger causality test indicated a bi-directional
influence of prices in one market with the other for the majority of the cases. Barring Patna,
Delhi and Mumbai’s retail and wholesale markets, the rest of the combinations did not
confirm the existence of LOOP. The study calls for a pragmatic approach on rational
allocation of resources based on the extent of price integration across wholesale and retail
markets as well as reducing the price distortion in less integrated markets through reduction
in transaction and transfer costs for improving the overall performance of wheat markets in
India.

Chapter No. 3

RESEARCH METHODOLOGY

3.1 The Study Area

In the Punjab province a district of Bahawalnagar which is one of the industrial city. It is
above the sea level at 226 meters as well as is the 7th most populated metropolitan areas of
Pakistan. Wheat, sugarcane and wheat are the major grown crops in these districts. The
irrigation source is non-perennial and perennial canals accompanied through tub wells. Wheat
and Wheat are the two main food crops however wheat governs with the 1.8 million foreign
exchange earnings. Besides, Bajra, Jawar, Moong, Mash sunflower and mustard are also
cultivated in a small quantity.

3.2 Justification for Selecting the Study Area

Conducted of this study was district of Bahawalnagar. This districts belongs towards the
extremely agriculture productive zones in Punjab. In Punjab, wheat has stimulated from
being a food crop toward commercial crop, paying a momentous number of individuals in
various activities. Wheat is the top priority crop receiving severe attention from domestic
government as well as other development shareholders due to reduction of its prospective in
poverty. In a manner, this study furthermore targeted at breaking habit of numerous
researchers to deliberate on easily reached areas and places alongside the central roads, as
well as it was revealed that no experimental research was completed in the sub-sector of
wheat in these regions.

3.3 The Research Design

3.3.1 Sources and types of data

Both primary as well as secondary sources were used to collect the information for this
research. Primary information’s were collected directly from the field respondents during the
study. Primary data Sources were the farmers, consumer, commission agents , wholesalers as
well as private traders. Secondary type data were attained from the materials of web based,
Bureau of statistics, United Nations Organization of Food as well as Agriculture (FAO),
Economic survey of Pakistan, Social and Economic Research Foundation (SERF) as well as
from the Food security and ministry of agricultural information office.

3.3.2 The Sampling procedures

In this research convenient sampling was applied during selecting the district as well as
respondents process. Simple approach was working to get diverse and detail information on
value chain of the wheat. According toward the Kabuje (2008), convenient approach was
useful in the estimated information of the triangulating reliability. It is normal for researchers
towards employ mixed technique designs to examine same phenomenon of the dissimilar
aspects.

3.3.3 Primary data from other marketing chain actors

Ninety respondents were randomly selected from four categories of farmers, consumers,
commission agents and private traders. Every category contributed different numbers of
respondents to sample, constructing a sum of 120 respondent.

Table 3.2: Distribution of respondents by categories in selected areas

Actors No. of respondents

Farmers 50
Consumers 40
Commission agent 20
Private Traders 10
Total 120

This completed sample size commencing the primary information source being 120 respondents.
Producers were interviewed towards capture the info on in what way desire is come across in
standings of the product output (wheat) preferences. Data from these groups was recorded from
domestic markets, region markets as well as domestic constructed on the semi-structured
interviews (checklists) as well as personal observations. It was originate that all actors were
determined in city towns and in some measure in villages particularly in peak season.

3.2.1 Farmers

The list of village was taken from agriculture extension office. From the list total five village
were selected randomly.10 farmers from each village were selected.

3.2.2 Commission agents

There are major five grain market in district Bahawalnagar. These markets were selected
randomly.4 agents from each markets were selected.
 3.2.3 Private trader

A list of private trader taken from market committee.10 private trader were selected randomly.

3.2.4 consumer

Convenient sampling technique was used to select 40 consumers from district Bahawalnagar.

3.2.5 Data collection

Questionnaires were prepared for each category of respondent for the collection of data.
3.3. Sources of secondary data

These types of data were gained from libraries, literatures of web-based and value chains past
studies in Pakistan and world other places. Research on the Poverty Alleviation (REPOA),
Social and Economic research Foundation (ESRF) and office of the Vice Presidents’ were
used on the way to obtain poverty and income data status in Pakistan, Economic survey of
Pakistan, Bureau of statistics, United Nations Organization of Food as well as Agriculture
(FAO). In Pakistan, Ministry of the agriculture information Centre was convenient in
obtaining numerous statistics related towards paddy production. Existing studies from the
electronic web-based resources were reviewed consequently.

3.6Qualitative analysis
3.6.1 Marketing chain mapping

Marketing chain Mapping of Stakeholders was used on the way to define the identified wheat
channels. In link with these, actors’ linkage atmosphere was used in the direction of define
the activities combination and relationships amongst actors themselves. In fact, each actor
conventionally has a relation with other actors, on the other hand this matrix defines solitary
whatever was found now the search area. Though matrix looks to be alike towards actor’s
map linkage, the previous is more broad and descriptive as associated to link map. Existence
of the 2 provides detailed relationships information calculated in this effort. In some studied
empirical studies, used linkage matrix by the Takele (2010) in his research on wheat
marketing chain and profitability analysis in the Ethiopia of Fogera Woreda, Similarly,
Stephen Biggs as well as Biggs (2004) useful this technique while they were increasing
poverty reduction programs through using actors’ concerned with method in natural assets in
Bangladesh.
3.7 Quantitative analysis
Socio Economic Characteristics
Describe the individual status of the Socio Economic Characteristics.

Age of the respondents

Respondent’s age plays a vital role in business development as well as increase the
respondents’ efficiency to farms as well as non-farms activities. It represents the activeness of
the represents to do work as well as willingness to attain his goals interrelated too socially
and economically.

Area under cultivation

It is essentially for better calculation to collect the respondents’ data about the land holdings.
This information make the respondents to get more profit by the use of new technologies.

Experience in the relevant field

Experience is very important factor because it has very important result on the production as
well as profitability of the farm. It makes respondents towards use the resources in a good
way for receiving more profit by the using of last experience.

Average Sale Wheat of the Wheat

It is an important variable as well as this is used for investigating the seller profitability.
Better sale wheat motivates the respondents to increase produce and improve the production
quality in the coming seasons.

Average Purchase Wheat of the Wheat

It is significant that one actor sale wheat is the purchase wheat of the next actor. For example
farmers’ wheat of sale is the commission agent purchase wheat and commission sale wheat is
the private trader purchase wheat and so on. Purchase wheat extremely depends on the
quality and the quantity of the produce. Wheats fluctuation occurs daily due to the daily
change in the demand and supply.
Average Marketing Cost
For buying a product which cost is spend on the loading, unloading, transportation, wastage,
labor, packaging as well as handling called marketing cost. Cost of the marketing is added in
the product wheat at every stage as product flows from one actor towards the other till last
consumer.

Descriptive statistics
Descriptive statistics used in the frequency distribution as well as average form
and for analysis of the socio-economic characteristics as well as market margins of each and
every actor in the supply chain in terms of the services provided. This formula was used for
understanding.

F= X / N * 100

Where

F= Frequency distribution

X= Observed Values

For Average Calculation this Formula was used

AM = Submission X / N

Where

A M = Arithmetic mean

X = Values of observations

N= Total numbers of Observations

Margins Analysis
Margins of complete supply chain are spread over the whole supply chain system as
well as different actors receive different margins according towards the services providing.
Margins or Profit or is the difference between sale wheat of the produce as well as purchase
wheat of the produce after subtracting the marketing cost.

Gross Marketing Margin = SP – PP

 Where

SP = Sale Wheat

PP = Purchase Wheat

Percent Marketing Margin = GMM ÷ ASP * 100

Where

GMM = Gross Marketing Margin

ASP = Average Sale Wheat

Net Margin = GMM – MC

Where

GMM = Gross Marketing Margin

MC = Marketing Cost

Net profit as percentage of margin = NM ÷ GMM *100

Where

NM = Net Margin

GMM = Gross Marketing Margin

Net profit as percentage of sale wheat = NM ÷ ASP * 100

Where

NM = Net Margin

ASP = Average Sale Wheat

Chapter No. 4

RESULTS AND DISCUSSION

This chapter includes the analysis and interpretation of result. The marketing activities of

different actors i.e. farmers, commission agents, private traders and consumers.
4.1 Socio economic characteristics of farmers

4.1.1 Age of the Farmers

Age is a very important socio-economic variable. Age Affects the Person’s attitude. It was
initiated that age configuration in the research area mainly focused on 31 to 35 years, which
are contributed 35% for the production of wheat. As per works, the section has perception,
is visible as well as has capability to solve the problems (Liyanagunawardena et al., 2012).
This specifies the capability of these growers toward produce rationally; join wisely on the
marketing as well as other some economic related actions. In between 26 to 30 was 25% for
the production of wheat in these research areas. This also specifies that young age group at
this age of productive participates in the wheat farming. According to my survey, I am very
glad to know about the interest of the teen agers to choose the farming as a professional
occupation.

Table No.4.1. Distribution of farmers According to their Age

Age Frequency Percentage

20-25. 10 50
26-30. 03 15
31-35. 02 10
36-40. 04 20
41-45. 01 5
Total 50 100
Source: Author’s own calculations

table number 4.1 shows that 50% of respondents are between 20 t0 25 year age , 15% of

respondents are between 26 to 30 year old, remaining 10% respondents are between 31 to 35

year old , 20% of respondents are between 36 to 40 year old and 5% of respondents are 41 to

45 year old.

4.1.2 Education of the Farmers

Farmer’s education plays a vital role to understand the production and the marketing
activities as well as education helps the farmers to increase their production to the usage of
new technology and increase their marketing efficiency. In the study areas most of the
farmers are uneducated they do not have any knowledge about the new technology and they
do not take any advantage from the latest farming techniques. Due to this lack of education,
our farmers are having low yield as compared to the other progressive countries. Educated
farmers easily be adopt latest as well as existing practices of the production and so results in
increased the output sold amount.

Table No.4.2. Distribution of farmers According to their Education

Education Frequency Percentage

Illiterate 04 20
5th class 03 15
8th class 05 25
10th class 10 50
Total 50 100
Source: Author’s own calculations

Table number 4.2 shows that 20 % of total respondents are illiterate and 15% of total

respondents got education till 5th class, 25% of respondents got education upto 8th class and

remaining 50% of total respondents got education till 10th class.

4.1.3 Marital Status of the farmers

Table No.4.3. Distribution of farmers According to their Marital Status

Status Frequency Percent

Single 10 20

Married 40 80

Total 50 100
 Marital is also a very important variable of socio-economic. Marital status affects the

Individual’s attitude. A huge majority of the famers sample in the study areas were married

like that 80% of the farmers are married as well as remaining 20% were unmarried. This

percentage are the same for all the cities of Pakistan.

4.1.4. Farming Experience of the farmers

Experience of farming is a very important key factor in the farming of staple

food as well as grain marketing. Higher yield obtain by the experienced farmers to the use of
latest technology as well as know about the marketing difficulties in the better way as
compared to the un-experienced farmers. In these study areas, most of the farmers were
having great experience for example an average of farmers every farmer having some
experience some have in a great amount and some were in less.

Table No.4.1.5 Distribution of farmers regarding their Farming Experience

Experience Frequency Percentage

1-5. 32 64
6-10. 12 24
11-15. 6 12
Total 50 100
Source: Author’s own calculations

Table No.4.1.6. Distribution of farmers regarding their Farming Land

Land holding Frequency Percent

1-10. 13 26
11-30 27 54
30-60 10 20
Total 50 100
This table shows that 26% of total respondents owned 1 to 10 acre , 54% of respondents are

owning 11 to 30 acre land and remaining 20% of respondents having 30 to 60 acre land

holding.
 Table No 4.1.6. Distribution of Grower according to area under wheat

Wheat area Frequency Percent

1-6 38 76
7-14. 09 18
15-20 03 06
Total 50 100
Table 4.1.5 shows that 25% respondents have 1-6 acre land only for the growing of wheat,

54% respondents have 7-14 acres for the production of wheat and remaining 20% growers
have 15-20 acres land for the production of wheat

Table No 4.1.7. Distribution of Grower according to wheat production per acre

Wheat production/acre Frequency Percent

08-09 30 60

9.1-10 14 28

10.1-12 06 12

Total 50 100
Table 4.1.7 shows that 60% of respondents got 8 to 9 Mond per acre and remaining 12%
people got wheat 9 to 10 Mound wheat per acre and remaining 12% respondents got 10 to 12
Mound wheat per acre.

Table No 4.1.8. Distribution of Grower according to wheat’s packaging weight

Weight attribute Frequency Percent

20-30kg 02 04

30-35kg 14 28

35-45kg 35 70

Total 50 100

Table 4.1.8 shows the contribution of growers on the basis of weight of each beg of wheat.
This table shows that the 2% of total respondents pack each packet having weight of 20 to
30kg, 30% of total respondents were pack wheat having weight of 30 to 35kg in each packet,
and 68% of total respondents pack the wheat having weight of 35 to 45kg in each packet.

Table No 4.1.9 Distribution of Grower according to using of transport

Transport Frequency Percent

Local 35 70

Owned 15 30

Total 50 100

Transport plays role in the quality of wheat. Table 4.1.9 shows the contribution of growers
on the basis of transport. It is cleared that 68% of total respondent were using local transport
to deliver their product i.e. wheat in market by using local transport and 32% of total
respondents were using their own transport to deliver their product into local markets.

4.1.10. Mode of Payment

Mode of Payment Frequency Percent

Lump Sum 25 40

Installment 10 20

Advance Payment 10 08

Total 50 100

This table shows that the 46% of grower get lump sum payment when they sell their wheat,
13 % of respondents get cash on installment and remaining 08 % farmers get advance
payment.

4.1.11. Source of selling wheat

Source Frequency Percent

Commission agent 20 40
 Private Trader 17 34

Consumer 13 26

Total 50 100

This table shows that the 40% of respondents sell their commodity to commission agent ,
34% of respondents sell to private trader and remaining 26% of respondents sell to consumer
directly.

4.1.12. sale price in different time

Sale Price Frequency Percent

1150-1200 15 46

1250-1300 10 13

1350-1400 05 08

Total 50 100

This table shows that the 46% of respondents sell wheat in early season , 13% of respondents
sell their wheat in mid-season and remaining 08% sell in late season.

4.4.13. Wheat for home Consumption

Mounds Frequency Percent

1-2 25 50

4-6 15 26

8-10 05 10

Total 50 100

This table shows that the 50 % of respondents keep 1 to 2 mound wheat for their own
consumption, 26 % of respondents keep 4 to 6 mounds at home and remaining 10 % keep 8
to 10 mounds at home for whole year for their own consumption.

4.2 Socio-Economic Characteristics of Private traders

4.2.1. Distribution of private traders according to their age

Age Frequency Percentage

25-35 4 40
 35-45 4 40

45-55 2 20

Total 10 100

Table 4.2.1 shows that 40% of total respondent are b/t 25 to 35 year old and 40% of
respondents are between 35 to 45 year old and remaining 20% of total respondents are
between 45 to 55 year old.

4.2.2. Distribution of private traders according to their family size

Family size Frequency Percentage

1-3 3 30

4-6 5 50

6-10 2 20

Total 10 100

Table 4.2.2 shows that the 20% of respondents having 1-3 family size, 20% of respondents
having 4-5 family size and remaining 30% of total respondents have 6-10 family size.

4.2.3. Distribution of private traders according to their education

Education Frequency Percentage

Under matric 2 20

Matriculation 3 30

Graduation 5 50
 Total 10 100

Table 4.2.3 shows that the 10% of total respondents are under matric either they done their
study to 5th class or 8th or 9th class or maybe less than that classes, 50% of total respondents
are matriculated or remaining 40% of total respondents have graduation.

4.2.4. Distribution of private traders according to their marital status

Marital status Frequency Percentage

Married 08 80

Unmarried 02 20

Total 10 100

Table 4.2.4 shows that the 80% of total respondents are married and remaining 20% of total
respondents are unmarried.

4.2.5. Distribution of private traders according to their wheat selling experience

Experience(year) Frequency Percentage

02-06 04 40

07-08 01 10

09-13 05 50
 Total 10 100
Table 4.2.5 shows that 40% of total respondents have 2 to 6 year experience and 10% persons
have 7 to 8 year selling experience and remaining 50% of total respondents have 9 to 13 year
experience of selling.

4.2.6. Distribution of private traders according to their Business Type

Business type Frequency Percentage

Sole proprietorship 06 60
Partnership 03 30
Shared 01 10
Total 10 100

Table 4.2.6 shows that the 60% of total respondents are doing/owing their business by
themselves, 10% of total respondents are doing their business with partnerships and
remaining 30% are doing their business with sharing with others in terms of part time.

4.3 Socio-Economic Characteristics of Commission agents

4.3.1. Distribution of commission agent according to their age

Age Frequency Percentage

25-35 10 50

35-45 6 30

45-55 4 20

Total 20 100
Table 4.2.10 shows that 50% of total respondents are 25 to 35 year old and 30% of total
respondents having 35 to 45 year age and remaining 20% of total respondents are 45 to 55
year old.

4.3.3. Distribution of Commission agents according to their family size

Family size Frequency Percentage

 1-3 05 20

4-6 10 50

6-10 05 30

Total 20 100
Table 4.3.3 shows that 20% of total respondents have 1 to 3 family member and 50% of
respondents 4 to 6 family members and remaining 30% of respondents are feeding 6 to 10
family members.

4 .3.4. Distribution of Commission agents according to their education

Education Frequency Percentage

Under matric 10 50

Matriculation 5 25

Graduation 5 25

Total 20 100
Table 4.3.4 shows that 50% of respondents are under matric and 25% of total respondents are
matriculated and remaining 25% of total respondents are graduate respectively.

4.3.5. Distribution of Commission agents according to their marital status

Marital status Frequency Percentage

Married 10 50

Unmarried 10 50

Total 20 100
Table 4.3.5 shows that 50% of total respondents are married and remaining 50% are
unmarried.

4.3.6. Distribution of Commission agents according to their wheat selling experience

Experience Frequency Percentage

02-06 16 60

07-08 02 10

09-13 02 30

Total 20 100

Table 4.3.6 shows that 60% of total respondents are 2 to 6 year experience and 10% of total
respondents are 7 to 8 year experience of selling and 30% of total respondents are 110 to 13
year experience of selling.

4.3.7. Distribution of Commission agents according to their Business Type

Business type Frequency Percentage

Sole proprietorship 10 50
Partnership 05 25
Shared 02 25
Total 20 100
Table 4.3.7 shows that 50% of total respondents are doing own business and 25% of

respondents are doing business with partnership and remaining 25% of total respondents are

doing shared business.

4.3.8. Distribution of commission agent according mode of payment

Mode of payment Frequency Percentage

Lump sum 10 50

Installments 6 30

Advance 4 20
 Total 20 100

4.3.9. Distribution of Commission agents according to marketing cost

Marketing cost Frequency Percentage

1-3 05 20

4-6 10 50

6-10 05 30

Total 20 100

4.6. Marketing Margins and different cost incurred by different

stakeholder’s works in the marketing chain of WHEAT

Production of wheat is our ancestor’s profession a large number of farmers connected with
the wheat production as well as every farmer having different dynamics. Farmers are playing
very vital role in the production of the wheat. After the farmer’s contractors plays their role in
the marketing system of wheat. Then the next wheat marketing chain actor is a wholesaler
who purchase the wheat in a bulk quantity and sell this quantity to the traders and different
retailers. Finally, the last step are the consumer who purchase the great quantity and sell the
households.

4.6.1 Average Marketing cost and profit of wheat Farmers in Punjab,

Pakistan.

Items Rs/maund

Farmers average production yield /acre = 42.9

Farmers average production cost = 540.79

Average sale wheat of the farmers = 1150

Net Margin = average sales wheat of farmers - Farmers average production cost

1150 - 540.79

= 609.21

Farmers are the backbone of our agricultural system without these our agriculture is nothing.
Anyhow, our farmers are not well educated as well as not too much skilled. Our farmers used
traditional methods they do not used the new technologies some of them know about new
technologies. This is the reason our production is lesser than the advanced countries. One of
the main reason our farmers having lack of credits, due to lack of credit they do not perform
too much activities in the marketing chain. According to my analysis, average yield of wheat
per acre was 42.9 and the total expenses average per maund was 540.79. Finally, the sale
wheat of a farmer was an average of per maund was 1150. According to this analysis farmer
earns profit 609.21.This margin is very suitable as compared with the other crops.

4.6.2 Average Marketing cost and profit of wheat traders in Punjab,

Pakistan.

Items Rs/maund

Average sales wheat of the farmers is the purchase wheat of the traders

Average purchase wheat of the contractor = 1150

Average marketing cost of the contractor = 80.67

Average sale wheat of the contractors = 1400

Average marketing cost of the contractor = 90.67

Gross marketing Margin = Sale Wheat – Purchase Wheat

= 1400 - 1150

Gross marketing margin = 250

Percent Marketing Margin = Gross Marketing Margin / Average sale wheat * 100

= 250 / 1400 * 100

Percent Marketing Margin = 17.80

Net Margin = Gross Marketing Margin – Marketing Cost

= 250 - 90.67

Net Margin = 159.33

Net profit percentage of margin = Net margin / Gross marketing margin * 100

= 159.33 / 250 * 100

Net profit percentage of margin = 63.732

Net profit percentage of sale wheat = Net Margin / Average sale wheat * 100

= 159.33 / 1400 * 100

Net profit percentage of sale wheat = 11.38

Contractors are the second most important players in the marketing system. In a wheat,

production contractor plays an important role to buy the produce and then bring it to the floor

mills for refining. Two types of the contractor’s one of them purchase the crop in the fields

and secondly who purchase the crop when it harvested. In a Pakistan, contractors are not well

educated but they earn suitable profits. According to the above analysis, contractors purchase

the crop from farmers at the wheat of 1150 per maund. After purchase, he carried out their

yield into the wheat mills and this all done by paying some cost, which was 90.67 and sold

out this yield at the wheat of 1400. Average of all the contractors earning the gross marketing

margin was 175 rupees, which was very suitable because their practices are very less and

marketing margin in a percentage was 12.97%. Net margin of a contractor according to their

sales was very great 82.33 rupees and net profit percentage was 63%. Net profit sales

percentage was 11.38 rupees

Commission agents

Items Rs/40kg

Commission charged by the commission agent = 10 %

Sale wheat of grower is the purchase wheat of commission agent

So

Purchase wheat of commission agent = 1216.66

Total cost beard by commission agent = 30.99

Wheat of wheat paid by the commission agent = 1247.65

Commission charged 10 % = 17.1365

Sale wheat of commission agent =

1264.78625

So the net profit of commission agent = 17.1365

The role of commission agent is considered very important in the markets of Pakistan and
they actually control whole the value chain of any agricultural commodity. They are known
as “Arti” in the local market of Pakistan. Commission agents basically buy the wheat from
the growers and sell it out to the different players of value chain and earn 17 rupees profit on
per one per 40 kg.

4.4 Socio economic characteristics of Consumers

Consumer value preference shows us how the consumer of wheat decide to eat the wheat or
which qualities of wheat attract them to eat it. Consumption preferences shows the
consumption pattern of consumer towards different attributes like color, freshness etc. why
consumer like the wheat and in which form they preferred to consume the wheat.

Most of the consumers showed attention towards the cleanliness attribute and they showed
that the cleanliness is the most important attribute while buying the wheat.

4.4.1. Distribution of Consumer According to their Age

Age Frequency Percent

18-25 10 50

25-35 20 40

35-60. 10 10

Total 40 100
Table 4.4.1 shows the consumers into different categories with respect to their age. This table
shows that the 50% consumers were between 18 to 25 year old, 40% consumers were
between 25-35 year old and remaining 10% consumers were between 35 to 60 year old.

4.4.2. Distribution of Consumer According to their Gender

Gender Frequency Percent

Male 20 50

Female 20 50

Total 40 100
Wheat is eaten by the males and females in equal ratio. Table 4.4.2 shows the distribution of
consumer according to their gender. According to table it is cleared that 50% respondents
were male and 50% respondents were female.

4.4.3. Distribution of Consumer According to Family size

Family size Frequency Percent

1-5. 35 70

6-10. 05 30

Total 40 100
Family size play vital role in the every aspect of life meanwhile family size also set the
preferences of consumers. Table 4.4.3 shows that 70% respondents were having 1 to 5 family
number, 30% respondents were having 6 to 10 family number.

4.4.4. Distribution of Consumer According to Occupation

Occupation Frequency Percent

Government Job 12 20
Private Job 10 47
Business 10 14
Agriculture 5 12
Other 3 7
Total 40 100
This table shows that 20% of total respondents are govt employers and 47% of respondents
are private job holder and 4% of respondents are running their business and 12% of
respondents are related with agriculture and other 7% of respondents are doing different
work.

4.4.5. Consumer Behavior towards Purchasing Source of Wheat

Source of purchasing Frequency Percent

Commission Agent 16 28

Private trader 20 42

Producer 14 28

Total 40 100

Table shows that 28 % of total respondents are like to buy from commission agent and 42%
of respondents like to purchase from private trader and remaining 20% of respondents are
willing to buy from producer directly.

4.4.6. Total wheat expenditure of consumers

Wheat expenditure Frequency Percent

01-05 35 70

06-10 05 10

11-15 10 20

Total 50 100

This table shows that 70% people spend 1000 to 5000 rupees on wheat, 10% of respondents
spend 6000 to 10000 rupees on wheat and remaining 20% of respondents spend 11000 to
15000 rupees on wheat.

4.4.7. distribution of consumer according to mode of purchasing

Mode of purchasing Frequency Percent

Grower 35 70

Commission agent 05 10

Retailer 10 20

Total 50 100
4.3.1. Major problems faced by Growers

 Availability of low quality of pesticides is available in market and these cannot

control the disease properly. The wheats of these pesticides are high with low quality
so these are major problem which is faced by growers.
 Infrastructure of the fruit markets is very poor and a number of commission agents are
presents in the market which is providing some services and in return they received
high margin.
 One of the major problems of the value chain of Wheat is that there is no flow of
information about wheats because it changes day to day and determined by the supply
and demand.
 High temperature, Poor packaging material, insect pest attack, poor transportation,
heavy rainfall, poor handling and poor loading and unloading are major problems in
value chain of Wheat .
 Poor process of auction system in market is major problem in value chain system
because commission agent play role for the benefits of himself and charge high
margin from growers. If any growers want to sell their produce directly to the
commission agents then they misbehave with them.
 Rude behavior of commission agents is major problem of growers and they want
relief from commission agent. But commission agents trap growers by providing
credit and services and then growers are bound to sell their produce to same
commission agents with low wheat.
 Unavailability of water and inputs for productions is main reason for poor
productions.
 Lack of new technologies and information is also major problem faced by the
growers.
 Poor management skills, aging and declining Wheat are major problems faced by the
growers

4.3.3. Major Problems Faced by Commission Agents

Commission agents face many problems

 Poor infrastructure and poor transportation is major problem faced by the commission
agents.
  Poor policies of Government towards the market committee are real problem and
unfair commission charges by different people are also problems which were faced
by the commission agents.
 Unskilled labor and poor packaging material is a main problem.
 There is no proper mechanism for determining the wheat mechanism for purchasing
and selling.
 Recovery of credit from other wholesaler and retailer is a problem of commission
agent.
 Poor infrastructure and poor transportation is major problem faced by the wholesaler
 Lack of credit is a problem wholesaler
 Lack of Government policies about wheat determination from commission agents to
wholesaler and high cost.

4.3.5. Major Problems Faced by Private traders

 Lack of knowledge about wheat is major problems of private trader.

 Poor quality of wheat is major problems of private trader.
 High transport cost bearded by the private trader.
 Poor infrastructure and high marketing cost are problems of private trader.

4.3.1. Major Problems Faced by Consumers

 Majority of the consumers have no information about the premium quality

of Wheat especially wheat and consumers have no information about the
attributes which are related to the premium quality.
 Consumers have no any standard through which they can categorize the
low quality of wheat and high quality of wheat.
 There are no storage facilities at retail points in our local market. So all
varieties of wheat are not available at the same time and consumers have
different attributes towards different varieties.
 Different wheats are demanded of same variety from consumers is the
main problem in our domestic market. Government policies are very poor
and not implemented properly by Government institutions.
  The availability of good quality of wheat is difficult because good quality
of wheat exported to other countries and not sells out in local markets. Due
to high wheats the peoples are unable to purchase good quality of wheat.
 Transportation and poor infrastructure are main problems which causes the
losses during the transport of commodity from one place to another.

Recommendations

 Government should promote and educate the farmers and other stakeholders in the
value chain for better work and good production.
 Shortage of gunny bags is also one of the major problem faced by farmers.
Government should take steps for this problem.
 Government should establishment the policies and laws for protecting the growers
and promoting the wheat.
 Government should start non-interest loan schemes for small farmers so that they
can survive and performs different practices themselves.
 It was observed that the commission agents were charging high commission.
Market committee should monitor the activities of commission agents so that they
can’t charge unfair from the farmers.
 Government should construct a bridge between growers and the export dealers for
promoting the wheat production.
 Government should improve marketing system of Wheat for minimizing the loss
and increasing the profit.
 Government should develop relationship between growers and different research
institutes for facilitating to the growers by providing g different information
related to the production, harvesting, transportation and consumptions.
 Government should improve the information disseminating channels and enables
them to disseminate the information at right time at right place about new and
innovative technology.
 Government should make sure that availability of good quality of pesticides at
moderate wheat for effective control of disease.
 Suitable packaging material should be used for minimizing the loss which occurs
due to the different practices.
 Government should supervise the market committees to control all activities.
 The wheat is the basic food of the Pakistan. The maximum consumer gave
response that prices of wheat increase day by day. The government should provide
subsidy on wheat and also control the prices of wheat.
Chapter 5

Conclusion and Remarks

This was undertaken to study the performance of value chain system of Wheat in Punjab,
Pakistan. The main objective of this study was to analyze the value chain system Wheat and
services provided by each actors and cost incurred by them, consumer preferences towards
different attributes of and major problems and their suggestions.

Agriculture sector plays a vital role in the economic system of Pakistan, in 2015-16 the Grand
Domestic Profit (GDP) growth rate was 4.71% as compared to last year which was 4.04%. In
national GDP agriculture contributes 19.8% and almost 42.3% of labor force is engaged in
the agriculture and 75% people are directly and indirectly are playing role in the betterment
of other sectors of the Pakistan (Govt. of Pakistan, 2015-16). Agriculture feeds whole rural
and urban population of the Pakistan to fulfill the nutrional requirements. It is also playing a
colossal role, from the time of freedom, in strengthening the economy of Pakistan. In
Pakistan, farmers depends upon climatic conditions which plays a vital role in production of
crops.
Due to great role of agriculture in the GDP, its help in the reduction of poverty. Urban and
peri-urban farming may define as “agriculture which is done in the urban areas by using
natural resources and urban wastages.” Marketing plays a vital role in the agriculture it
covers all the steps which are being involved in the moving of agricultural products from
farm to last consumer. There are several steps involved in the marketing i.e. production,
planning, picking, sorting, packaging, transportation, distribution, advertising and sale of
products.

This study was based on the primary data collection and one main district was selected for the
selection of data.

1. District Bahawalnagar

A representative sample of growers, commission agents, was selected and for consumer
preferences was study from 40 consumers and data was analyzed through descriptive
statistics. By using the descriptive statistics the socio-economic factors were calculated in
form of frequencies. The socio-economic factors include age, education, experience etc.
Margins analysis was used to calculate the margins of different actors in the value chain of
Wheat. The major respondents were the main wheat growing respondents and they were
selected by using the convenience sampling technique and data was collected.

The growers are the main source of supply of Wheat in the market. Fifty growers, twenty
commission agents, ten private traders were selected and 40 consumers were selected for the
investigating of the consumer behavior towards different attributes of Wheat.

Commission agents were found in the whole sale grain market of the city. They deal with the
larger lots than the bioparies or village dealers. Sixty percent of commission agents have
more than 5 year experience. Majority of commission agents are un educated.

Production of wheat is a profession of many farmers who have different socio-economic

characteristics. The main actor/player is considered as grower in the value chain of wheat.
Producers play main role and due to them the value chain of wheat is being done. They do
different activities from the farm level till harvesting level for better production in the sense
of quality and quantity. Value chain is different at farm level but it change step to step till it
reaches to the last consumer.

The economy of Pakistan is mainly based on agriculture sector. Agriculture sector provides
occupation to 42.3% of overall work force of the country. Agriculture plays a major role in
driving the economy of the country. The economy of Pakistan is stronger due to its
agriculture sector and it contributes 19.8% in total GDP. Food sector has significant role in
the development and progress of Pakistan as well as in developing countries.

In Pakistan there are 5000 working industries and 60% industries are agriculture based (GOP,
2015-16). In Pakistan total area which is under wheat cultivation is 81.5 thousand hectares
with yield of 91.4 thousand tone. Total area under wheat cultivation in Punjab is 85%, 10%
area of KPK and 5% in Sindh (GOP, 2015-16).

The majority of the consumer faced problem that the prices of food item including wheat
raising day by day. That problem must solved at priority level to make marketing system of
district Bahawalnagar more efficient.