This paper attempts to analyse the effects of changes in agricultural prices on different segments of the society. Taking the cases of two major crops; namely wheat and rice, and of agricultural inputs in general, it works out the ‘own-price effects’ and ‘cross-price effects’ of price changes on producers, consumers, and the government in Pakistan.1 In this way the paper provides a broad (multimarket) framework which could be used to evaluate the government’s agricultural price policy.2 The paper is divided into three sections_ Section I discusses the methodological framework. The empirical analysis is provided in Section II. Section III deals with some tentative Conclusions inferable from this study.