<p>While the minimum purchase price policy for grain has been instrumental in ensuring grain security, its effectiveness in reducing pesticide use remains underexplored, particularly regarding the environmental sustainability implications of such market interventions in developing economies. This study initiates with the wheat minimum purchase price policy, employing panel data from 29 provinces in China to systematically examine the policy’s impact on pesticide use intensity through a difference-in-differences model. Furthermore, a series of methods are used to conduct endogeneity and robustness tests. The main findings reveal that the wheat minimum purchase price policy effectively diminishes the intensity of pesticide use. Moreover, the policy can promote pesticide reduction by augmenting farmers’ income levels, promoting the technical efficiency, adjusting the planting structure, and expanding farmland scale. Additionally, the wheat minimum purchase price policy has a more pronounced effect on reducing pesticide use in disaster-prone areas than in less disaster-prone areas. This study provides policy insights on how the minimum purchase price policy can facilitate pesticide reduction and enhance green development.</p>