Pakistan plans to increase rice exports by four times by 2030
Published on: December 9, 2023.
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LAHORE: Pakistan, in its pursuit to expand its export portfolio and explore new markets, aims to increase its annual rice exports to $10 billion by 2030, a fourfold increase from the current $2.5 billion, a top industry official revealed on Friday.
During the first Export Advisory Council Meeting, chaired by Commerce Minister Gohar Ejaz, discussions were held regarding various issues related to rice exports.
The minister expressed the desire to develop a detailed roadmap to achieve the target of $10 billion in annual rice exports. This goal is part of the federal government’s overall target of $100 billion in exports, as stated by Shehzad Ali Malik, Chairman of the Punjab Rice Research Board and CEO of Guard Agricultural Research & Services.
Malik, with his involvement in the entire rice value chain, including research and development, as well as domestic and global sales, mentioned that Pakistan is on track to significantly increase its rice exports with the introduction of high-yielding hybrid rice varieties and improved quality control measures.
He informed the meeting participants about the projection that Pakistan’s rice exports may reach $3.5 billion in the ongoing financial year. This can be achieved through focused efforts on improving quality assurance and brand management globally.
Malik expressed his belief that annual rice exports could be raised to $5 billion within three years and then doubled by 2029-30, eventually reaching the target of $10 billion.
He emphasized the importance of meeting the quality standards of different markets, including the European Union (EU). Malik stressed the need to address issues related to EU alerts on pesticides and to ensure that maximum residue levels (MRL) are checked to guarantee the sale of quality grains in the market.
To address this, Malik proposed the establishment of an analytical lab by the KSK Rice Research Institute, which will provide a one-window solution for MRL testing. The funding for the lab can be considered from the Export Development Fund (EDF), allowing for a scientific assessment of MRL in rice production.
Regarding the promotion of rice brands globally, Malik suggested that Pakistan should develop a strategy to establish its brands in the international market, particularly to compete against Indian brands. He proposed that fast-moving consumer goods (FMCG) brands in the food category should be provided with listing fees and shelf rentals through the Trade Development Authority of Pakistan (TDAP) in supermarkets, funded by the EDF.
Furthermore, arrangements should be made for FMCG brands to have gondola/displays in selected supermarket chains at different locations, also funded by the EDF. Additionally, FMCG brands with registered trademarks in Pakistan should receive EDF grants to cover the costs of their brand registration with intellectual property rights (IPR) and trademark registration authorities in overseas markets.
Malik also highlighted the importance of commercial counsellors in identifying and establishing contact with importers/distributors of FMCG brands internationally, rather than focusing solely on commodity importers. This would aid in introducing Pakistani FMCG brands, leading to higher foreign earnings.
He concluded by stating that building FMCG brands would be more beneficial in terms of long-term foreign earnings, as opposed to short-term sales through labeling, as foreign buyers have the option to shift to other countries based on price or other considerations.
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