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Giving boost to rice exports
Siraj-ul-Hasan
ARTICLE (April 19 2003) : Rice is one of the most important crops of Pakistan by having a unique position being both as a cash and food crop at the same time.
It feeds millions of persons as well as earns valuable foreign exchange for the country.
Surprisingly, on the part of those who have been at the helm of affairs from time to time it has never received a fair deal. As a result, its production and exports have always been subjected to ups and downs.
The annual area and production figures of rice during the last few years are given in table I.
It will be seen from the above figures that both the area and output of rice having continued rising year by year, declined by 5.64 percent and 6.09 percent respectively during 2000-2001, as against the previous year.
Not only did the scarcity of water limit the farmer's ability to maintain area under cultivation at previous year's level, it also adversely impacted the per hectare yield of rice which declined by 1.4 percent.
Although the production of rice (at 4.8 million tonnes) was 6.8 per cent less in FY 00-01 than last year, it was considerably higher than the domestic requirements that are estimated at 2.5 million tonnes leaving 2.3 million tonnes as exportable surplus.
Area
000 hectares Production is 000 tonnes
Table - I: Area and production of rice |
| Year |
Area |
Production |
| 1996-97 |
2251 |
4305 |
| 1997-98 |
2312 |
4333 |
| 1998-99 |
2424 |
4674 |
| 1999-2000 |
2515 |
5156 |
| 2000-2001 |
2373 |
4803 |
Source: Ministry of Food and Agriculture
GoP. Exports of rice during the last few years are given in table II.
The above figures would show that the annual export earnings for rice continued declining year by year during the year under review. Ultimately it dropped by 2.6 percent to dollar 527.0 million.
A breakup of exports volumes of Basmati rice (superior quality known for its aroma) and other varieties (like Irri-6 and Irri-9) provides some insights.
During FY 01 the share of Basmati rice in total export volume declined from 30 to 20 per cent resulting in a substantial loss of foreign exchange.
Falling international prices of rice, quality concerns and lack of proper marketing were also responsible for the decline in export earnings.
Rice exports in Middle East: Rice exports to Dubai, (which has over time turned into a distribution centre for Pakistani rice) accounted for 34.2 per cent and 4.9 per cent of total export volumes of Basmati and other varieties respectively.
Keeping in view the size and population of Dubai, this relatively high share provides some credence to market reports that Indian traders in Dubai are selling Pakistani rice under their own brands at much higher prices in other markets.
As such, in Saudi Arabia, being substantial buyer of Pakistani rice, the country is losing its market share to India due to the nom-availability of quality par-boiled rice during FY 01.
Basmati exports also declined by 21.8 percent in terms of volume with a 30.9 percent fall in value.
Still, on a positive note, falling earnings, from rice exports may be arrested by factors like (a) the recent decision by the Philippine government to allow Pakistani firms to take part in rice bidding there, (b) permission to the private sector companies to certify quality specifications and grading of rice prior to shipment from Pakistan, (c) formation of a quality review committee to inspect the export consignments and (d) a joint stand with India against the patenting of three qualities of Basmati rice by the US firm, Rice Tec.
As expected and projected, as a result of appreciable increase in the rice exports.
Pakistan has earned foreign exchange to the tune of 28.74 crores dollar during the first seven months, ended January of the current fiscal year according to the statistics released by the Federal Bureau of Statistic
(FBS).
| Table
- II: (Showing export earnings) |
| Year
Exports Earnings in million dollars |
| 1997-98 |
562.1 |
| 1998-99 |
533.6 |
| 1999-2000 |
530.7 |
| 2000-2001 |
527-0 |
Source: Federal Bureau of Statistics (FBS).
It may be recalled that in the past Pakistan had attained the top-most position among the world rice exporting countries.
But, due to lower quality of rice, ignoring the world market demand, slackness in seeking new markets coupled with the increase in production cost, the export of Pakistani rice was adversely affected.
The markets already captured were also slipped out of hand on account of exporting defective rice by some unscrupulous Pakistani exporters.
The Indian traders tactfully exported their inferior rice by branding it of Pakistan origin just to give bad name to Pakistan and selling Pakistan rice of better quality under their own names to earn illegal profits at the cost of Pakistan.
In view of the above situation, it is necessary that greater attention is paid to cultivate new high-quality varieties, decrease in the production cost through adoption of modern technology and seeking new profitable markets.
Also, on the part of the government, it is imperative that it may create better environment by providing more facilities and incentive to the rice exporters.
This would go a long way in regaining its lost position by Pakistan in the global rice export market.
Eventually, this would also impart strength and stability to the overall agrarian economy of Pakistan.
Source: Business
Recorder
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