Boost in Non-Textile Exports Drives Economic Growth
Published on: January 24, 2024.
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Planners in Pakistan are recognizing the untapped potential of non-textile exports. With prudent policy changes, many non-textile sectors have the opportunity to thrive without requiring additional finances. The success of the rice and IT sectors in terms of export performance following these policy changes is a testament to this fact.
In December, IT exports surpassed $303 million and are well on their way to achieving their $4 billion target. Meanwhile, rice exports have increased significantly, with a 76.5 percent growth in the first half of FY24. Basmati rice exports saw a growth of 54.7 percent, while other varieties experienced a staggering 247 percent increase.
IT Minister Umar Saif is optimistic about the future of IT exports, expecting them to reach $10 billion by 2030. Similarly, Shahzad Malik, a member of the Export Advisory Council (Non-Textile), Ministry of Commerce, believes that rice exports have the potential to touch $5 billion within five years.
While much attention has been given to IT exports, rice is also a success story in the non-textile sector. Without any direct or indirect subsidies, rice exports have seen substantial growth. In 2002, Pakistan’s rice exports amounted to $462 million, and by 2023, they had reached $2.5 billion. The current year is expected to see exports exceeding $3 billion.
Pakistan produces two types of rice: Basmati and non-Basmati (IRRI). Basmati rice, a heritage of Pakistan, is mainly grown in the Punjab region. Malik believes that rice has the potential to reach $10 billion within the next ten years. He emphasizes the importance of constant research and development in agriculture to increase yields. Unfortunately, no research had been conducted on the IRRI type rice, which was acquired from the International Rice Research Institute (IRRI) in the Philippines in the 1960s. The yield remained stagnant at around 45-50 maunds/acre.
However, in 1973, Hybrid Rice was developed and introduced in China by Prof. Yuan LongPing, also known as the “Father of Hybrid Rice.” It took 26 more years for a local enterprise, the Guard group, to begin field trials of hybrid rice in 1999 through the Hunan Rice Research Institute in China.
In 2002, Guard’s first hybrid rice variety was recommended for cultivation by PARC. Hybrid rice commercialization started in Sindh province. Over the past 25 years, PARC has recommended 12 Guard hybrid rice varieties for cultivation.
In 2023, Punjab approved 2 open-pollinated varieties (OPV) of rice and 1 extra long grain variety.
The introduction of hybrid rice has doubled the yield per acre from 45-50 maunds to 100-120 maunds/acre. This increase in yield has led to a doubling of farmers’ income, contributing to their prosperity. Hybrid rice has also played a significant role in poverty alleviation, particularly in rural Sindh.
Currently, Pakistan produces 9.3 million tonnes of hybrid rice, the majority of which is exported. It has surpassed Basmati rice as the major rice export variety.
Researchers in the country are now focused on developing separate hybrid rice seed varieties that are heat, drought, and salinity tolerant. Several domestic seed research companies are in the final stages of developing extra long grain hybrid rice, including Basmati Rice for Punjab.
In addition, there are various corporate farming projects in progress. As part of CPEC Phase-II, the Chinese have launched the first agro project in collaboration with a local company, aiming to replace the 0.4 million tonnes of chili they currently import from Pakistan.
To establish Pakistan as a reliable source of rice with continuous surplus production, the advisor suggests leveraging India’s ban on rice exports to our advantage. He also emphasizes the need to establish contacts with importers and distributors of FMCG handling international brands to introduce Pakistani FMCG brands instead of relying solely on commodity/private label importers.
Source: The News
