Summary
This Oxfam discussion paper discusses a pilot project in Pakistan aimed at improving the income of small-scale farmers who grow basmati rice in Punjab province. The project focused on developing a mechanism for transferring a premium payment directly to farmers without affecting the cost for retailers or consumers. The intervention is reported to have successfully closed the income gap for vulnerable small-scale farmers, but it requires other complementary measures. The project shows that increasing prices is a complex issue that requires careful consideration of various factors. The paper identifies eight key factors for the success of price interventions and offers recommendations for stakeholders interested in designing and implementing similar interventions.