The objective of this paper is to evaluate the degree of price convergence towards equilibrium, measuring the distance between actual agricultural price and market clearing prices with the use of econometric methods. The results show that agricultural prices have adjusted substantially to market clearing levels. Prices of all the agricultural products examined in the paper, except those of wine, potatoes and poultry meat, are, however, constrained by policy interventions. In particular, for wine grapes, apples and milk the difference between the observed and the market clearing price was close to 30 per-cent in 1994. The supply-demand clearing prices of wine, potatoes and poultry meat are lower than the actual prices during the period studied. Finally, for maize and cattle meat it seems that the observed prices were very close to the market clearing prices. The model was also used to evaluate the policy to be followed as far as the exchange rate is concerned. The comparison of the price with an average international import-export price converted into domestic currency shows that even if the price evolution of each agricultural product is different, the Purchasing Power Parity (PPP) approach would have required a revaluation of the national currency in 1992 and a devaluation in 1993.