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Challenges in rice production

Challenges in rice production

After a fall in the number of major exporters, global rice production in 2023-24 is expected to fall slightly year-on-year, and total consumption and stocks are also expected to fall, as per the International Grains Council estimation.

World rice production statistics showed, is projected to resume an upward trend in 2024-25, driven chiefly by growth prospects in the five main sectors, to stand a record 520 million tonnes (+2%), with consumption and stocks also expected to rise.

However, as Indian restrictions are expected to remain in place, the potential for trade expansion in 2025 (January-December) is limited at approximately 50 million tonnes, unchanged year-on-year.

In the developing countries like Pakistan, country holds in the global rice market, a significant position and is one of the leading rice-producing states. The rice sector is crucial for the country’s economy, offering livelihoods to a substantial portion of the population and contributing substantially to agricultural exports.

Area Under Rice Crops (000 Hectares)
Fiscal Year Rice
2010-11 2,365
2011-12 2,571
2012-13 2,309
2013-14 2,789
2014-15 2,891
2015-16 2,739
2016-17 2,724
2017-18 2,901
2018-19 2,810
2019-20 3,034
2020-21 3,335
2021-22 3,537
2022-23 P 2,976

Pakistan is the world’s 10th largest producer of rice. Pakistan’s exports make up more than 8 per cent of the world’s total rice trade.

In the agriculture economy off Pakistan it is an important crop and comes in Kharif crop. According to the Economic survey of Pakistan FY2023, after wheat, rice is the second main staple food crop and second major exportable commodity after cotton. Rice contributes 1.9 per cent of value added in agriculture and 0.4 per cent in GDP. The production of coarse types is growing as the farmers are bringing more areas under coarse hybrid types during the last few years.

During 2022-23, the crop was cultivated on 2,976 thousand hectares, registered fall of 15.9 per cent over 3,537 thousand hectares previous year. Its production fell from 9.323 million tonnes in 2021-22 to 7.322 million tonnes in 2022-23, recording a pessimistic growth of 21.5 per cent. Rice production, however, is lower than last year.

This less production in combination with high input prices has caused increase in paddy price. Facts revealed that presently Pakistan’s rice export has touched a record $3.5 billion during the current fiscal year 2024. Our country experts mentioned, has made a record in rice exports, which underscored Pakistan’s growing prominence in the global rice market. Pakistani exports exported greater than 5 million tonnes of rice amid record yield after floods. The export of rice has grown 40 per cent as against to previous year. Rice value $3.50 billion was exported this fiscal year as against to 2 billion dollars last fiscal year. The government of Pakistan to increase the land for rice crops and it is also requested that the government to reduce the interest rate immediately besides cutting in high price of electricity.

Experts recorded that the Pakistani rice market looks set for a strong 2024, carrying over the optimistic mood from the second half of 2023, although there remains some caution over downside risks from macroeconomic situations and the possibility of India relaxing its restrictions on rice exports. After a slow start to last year in the aftermath of 2022’s devastating floods, India’s non-Basmati white rice export ban in July, a near-record crop production and large exportable surplus, and competitive prices, Pakistan’s rice market saw a surge in exports in the second half. That pace is expected to continue into 2024.

The US Department of Agriculture forecasts Pakistani milled rice production to raise 64 per cent year on year to 9 million metric tonne in the marketing year 2023-24 (November-October), which would be the second-largest crop ever, slightly below the record 9.3 million metric tonne crop in FY 2021-22.

Rice exports are forecast to reach a new record of 5 million mt in FY 2023-24, surpassing the 4.8 million metric tonne attained in FY2021-22. Pakistan is a major producer of rice, with a diverse range of varieties counting Basmati and non-Basmati rice. Pakistan’s total rice production is substantial, contributing significantly to global rice output. Rice exports constitute a vital component of Pakistan’s overall export earnings.

Pakistan is mainly renowned for its high-quality Basmati rice, which enjoys demand in international markets. Exports of non-Basmati rice also contribute substantially to foreign exchange earnings. It is cultivated across many regions of the country, with dissimilar provinces specializing in the production of specific varieties. Basmati rice, famous for its aroma and long grain, is predominantly grown in the Punjab region. Sindh and other regions are called for the production of non-Basmati rice.

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