Global Rice News

Bumper Crops of Cotton and Rice Expected to Boost Pakistan’s Foreign Exchange Reserves

In an exciting development for Pakistan’s economy, the Sindh Abadgar Board, a group advocating for farmers’ rights, announced on Sunday that bumper crops of cotton and rice are projected to contribute between $3 billion to $5 billion to the country’s foreign exchange reserves. This increase is anticipated to be achieved through a reduction in imports and an increase in exports, ultimately strengthening Pakistan’s economy.

At a meeting in Hyderabad, chaired by Vice President Mahmood Nawaz Shah, the farmers expressed their hopes for an exponential growth in cotton production. They forecasted a rise from 4.7 million bales in 2023 to nearly 12 million bales in 2024. Such a substantial increase in cotton production would greatly benefit Pakistan’s export industry.

Similarly, the growers expect a significant surge in rice exports during the current fiscal year compared to the previous year, which experienced extensive damage due to heavy rains and floods. The farmers are optimistic about the potential of Pakistan’s rice export market.

Despite these positive forecasts, the farmers expressed their concerns about the lack of support from the government. They mentioned the persisting issues of inflation, black marketing of agricultural inputs, and exploitation through low prices. The growers highlighted that hoarders have been stockpiling pesticides, fertilizers, and other essential inputs, contributing to price manipulation.

Urea, the most widely used fertilizer in Pakistan, was highlighted as one of the black-market products. The official price of a bag of urea has more than doubled from Rs1,650 to Rs3,400, with hoarders taking advantage of the situation and selling it for as high as Rs4,200. The farmers estimate that they are paying between Rs50 billion to Rs70 billion above the official prices due to these manipulations. Additionally, a shortage of Calcium Ammonium Nitrate (CAN) has been artificially created, resulting in a price hike.

The farmers also raised concerns about the exploitation they face from millers and middlemen who refuse to pay the rightful prices for their crops. The government had set a price of Rs8,500 per 40 kilograms for cotton, but farmers are receiving as low as Rs5,000 in the market. Likewise, the price of rice has decreased from Rs4,200 per 40 kilograms to Rs2,800. The farmers anticipate a further decline to Rs2,600 in the future. Moreover, the cotton and rice millers are allegedly making illegal deductions from the farmers’ payments, compounding the exploitation.

The farmers highlighted their grievances regarding the lack of government attention to the disease affecting onion crops, resulting in substantial losses. They emphasized that the disease has not been properly diagnosed, and as a result, onions need to be imported to address the ensuing shortage.

The Sindh Abadgar Board urged the government to set a wheat procurement price of Rs4,912 per 40 kilograms for the next harvest season. In 2022, the Sindh government had doubled the wheat price from Rs2,000 to Rs4,000 per 40 kilograms to assist farmers affected by rain and flooding. This measure aimed to help them recover losses and generate profits.

The growers appealed to the government to take immediate action against black marketing and illegal deductions, signaling their desire for a serious response to their complaints. They also requested regulatory measures to address the exploitation by middlemen, who manipulate retail prices and further exploit farmers.

In an effort to support export-oriented farmers, the Sindh Abadgar Board recommended that the Trade Development Authority of Pakistan (TDAP) organize exposure visits for them to target countries. They believe that Pakistan can explore significant opportunities in horticultural exports.

Overall, the anticipated bumper crops of cotton and rice in Pakistan present a promising opportunity to boost the country’s foreign exchange reserves. However, it is crucial for the government to address the concerns raised by the farmers and take appropriate measures to support and protect their interests in the agricultural sector.

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