Increase in Wheat and Rice Production
Published on: November 5, 2023.
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Despite some challenges, Pakistan’s agricultural sector has experienced impressive yields in recent years. The wheat crop, in particular, has seen significant growth, resulting in a windfall of Rs400 billion last year. This increase in productivity has allowed the government to set a target of 32.2 million tonnes for the current fiscal year. If this target is achieved, Pakistan could become a net exporter of wheat.
It is worth noting that Pakistan’s reliance on imported wheat, particularly from Ukraine, had an impact on the economy following Russia’s invasion last year. However, the country’s increased production has the potential to reduce this dependence and strengthen the economy.
On the other hand, India’s domestic issues with its rice crop present an opportunity for Pakistan. With India banning the export of non-basmati rice and imposing restrictions on basmati exports, Pakistan is poised to become the world’s primary basmati rice exporter. Unlike Thailand and Vietnam, which export different varieties of rice, Pakistan specializes in basmati rice.
While this presents a significant opportunity for Pakistan, recent reports suggest that India may review its export prices due to falling domestic basmati prices. India wants to undo the reputational damage caused by the ban, as many countries relied on it for their rice imports. Nevertheless, the current situation provides a window for Pakistan to establish itself as a major player in the global rice market.
The increased domestic supply and international demand for agricultural products in Pakistan are positive developments. They can help support the country’s overall economic reform efforts and act as a catalyst for growth in other sectors as well.
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