With global food crises and food price volatility in recent years, agricultural subsidies have onceagain gained prominence as a policy instrument in many developing countries. In Mongolia too,subsidies to the agriculture sector mainly through government budgetary transfers, haveincreased over time. These gained prominence in 2008 when a global, regional (the drought inRussia, and Kazakhstan, the two main suppliers to Mongolia), and the national food productionshortfall sent domestic wheat prices soaring to record levels. Wheat production had reached anall-time low during the years 2005 to 2007. Consequently, subsidies to crop, livestock, and agroprocessingsectors have increased since 2008, and now represent a complex set of programs,sometimes with conflicting and overlapping goals and intended beneficiaries.
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