An Evaluation of Wheat Support Policy in Iran

The main goal of this research was an evaluate of wheat production's support policy in Iran. For the purpose, Producer Support Estimate (PSE) indicator, which is an indication of the extent of direct and indirect government support for wheat producers, was used for the duration of 1989-2004 period. Results showed that this indicator increased from -126 billion Rls (local currency) in 1989 to 22900 billion Rls in 2004. Based upon the obtained results, it is proposed that policy makers reconsider the method of wheat producer's subsidization and shift the agricultural policies in Iran from distributive transfer oriented ones towards productive policies to promote the competitiveness in the world markets.