Global Rice News

Planners in Pakistan are recognizing the potential of non-textile exports and the importance of prudent policy changes. Both the IT and rice sectors have seen significant export performance due to these policy changes.

IT exports in December reached over $303 million and are on track to achieve their $4 billion target. Rice exports have also experienced significant growth, with a 76.5% increase in the first half of FY24, including a 54.7% increase in basmati rice exports and a staggering 247% increase in other rice varieties.

Umar Saif, the IT Minister, has high hopes for the IT sector, expecting exports to reach $10 billion by 2030. Similarly, Shahzad Malik, a member of the Export Advisory Council for Non-Textile sector, Ministry of Commerce, is optimistic about rice exports, predicting that they will reach $5 billion within five years.

While much attention has been given to IT exports, the success story of the rice sector outside of the textile industry should not be overlooked. Without any direct or indirect subsidies, rice exports have steadily increased over the years. In 2002, rice exports were $462 million, and by 2023, they had risen to $2.5 billion. It is projected that this year’s rice exports will exceed $3 billion.

Pakistan grows two main types of rice: Basmati and non-Basmati (IRRI). Basmati rice, a heritage crop of Pakistan, is mainly grown in Punjab. Malik believes that with consistent research and development of seeds, rice has the potential to reach $10 billion within the next decade. Unfortunately, not enough research was done on the IRRI type of rice, which was acquired from the International Rice Research Institute (IRRI) in the 1960s. As a result, there were no advancements in the yield, which remained stagnant at around 45-50 maunds/acre.

However, there has been progress in recent years. Hybrid rice, developed in China in 1973 by Prof. Yuan LongPing, known as the “Father of Hybrid Rice,” has played a crucial role. The Guard group, a local enterprise, began field trials of hybrid rice in Pakistan in 1999, and the Pakistan Agriculture Research Council (PARC) recommended the first hybrid variety for cultivation in 2002. Since then, PARC has recommended 12 Guard hybrid rice varieties for cultivation.

Thanks to hybrid rice, the yield per acre has doubled from 45-50 maunds to 100-120 maunds, leading to increased farmer prosperity and poverty alleviation, especially in rural Sindh. Hybrid rice has also overtaken Basmati as the major rice export variety, with Pakistan now producing 9.3 million tonnes of hybrid rice, most of which is exported.

Researchers in Pakistan are now focused on developing hybrid rice seed varieties that are tolerant to heat, drought, and salinity. Additionally, domestic seed research companies are in the final stages of developing extra-long grain hybrid rice, including Basmati Rice for Punjab.

Furthermore, there are several corporate farming projects underway, and the Chinese have initiated an agro project in collaboration with a local company as part of CPEC phase-II. This project aims to replace the 0.4 million tonnes of chili that China currently imports from Pakistan.

To establish Pakistan as a reliable rice supplier with a continuous surplus production, it is important to take advantage of India’s ban on rice exports. By identifying and establishing contacts with importers and distributors of FMCG (Fast Moving Consumer Goods) handling international brands, Pakistan can promote the introduction of Pakistani FMCG brands instead of solely relying on commodity/private label importers.

Overall, the non-textile sector, particularly the IT and rice sectors, has shown tremendous potential for growth and export performance. With the right policies and continued research and development, Pakistan can further strengthen its position in these sectors and increase its export revenues.

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