Bumper Crop and Intelligent Policies: Boosting Agricultural Yields
Published on: April 23, 2024.
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Rice Exports from Pakistan Reach Record Highs
Pakistan’s rice exports have reached record levels, surpassing $2.5 billion in the first eight months of the fiscal year 2024. This growth has been made possible by a strong harvest and strategic support from the Ministry of Commerce. The increase in exports has raised concerns in neighboring India, as their Basmati exports are expected to decline. However, Pakistan’s strong harvest and efficient strategy have allowed the country to maintain competitive prices.
Pakistan’s Rice Export Growth
Pakistan has seen a significant increase in rice exports, with a record bumper crop of 9.5 million metric tonnes. This increase in production, coupled with the upward revision of Minimum Export Prices (MEPs), has boosted foreign exchange earnings. The Ministry of Commerce implemented upward MEPs in September 2023, following India’s ban on white rice exports. These revisions have allowed Pakistan to fetch the true value of its crops, increase foreign reserves, and stabilize local Basmati rice prices. The ministry has continued to monitor the global rice market and made further revisions in November 2023.
New Markets and Opportunities
Pakistan has also made strides in exploring new markets and diversifying its exports. The country has shipped a large quantity of rice to Indonesia, the Philippines, and Malaysia due to weather conditions and a short-harvest rice crop in the Far East. Additionally, collaborative efforts between the Ministry of Commerce, the Department of Plant Protection (DPP), and the Commercial section in Russia have allowed for the resumption of rice exports. Pakistan has exported a total of 3.9 million metric tonnes of rice, including Basmati and Non-Basmati varieties, during the first eight months of fiscal year 2024.
Challenges and Future Strategies
Pakistan faces challenges in maintaining its global Basmati market share. While the country has seen a significant increase in coarse rice exports due to the growth of hybrid rice varieties, it needs to focus on developing open-pollinated Basmati aromatic extra long grain varieties and reviving the world-famous Kernel Basmati rice. Furthermore, the transportation of rice to ports remains a costly endeavor, and utilizing cargo trains to reduce inland freight costs can help increase exports. It is also crucial to address misdeclaration and under-invoicing of rice exports to neighboring countries such as Afghanistan and Iran to ensure fair trade practices.
Overall, Pakistan’s rice exports are at an all-time high, and with strategic planning and the development of new varieties, the country can continue to strengthen its position in the global rice market.
Source: Dawn
