Introduction:
We will discuss opportunities for Rice Exports in Pakistan in this blog post. It is a significant subject of discussion when we talk about Rice Exports of Pakistan.
Rice is an essential food of more than half of the population in the world. More than 3.5 billion human beings use rice for more than 20% of calories and 31% in developing countries. Policies related to rice prices, production, and trades impact the poor.
Pakistan is an agricultural country. Countless people earn their livelihood by this sector for earning their livelihood. Agriculture contributes about 24% of Pakistan’s total gross domestic product (GDP). It gives employment to almost half of the labor force in the country. The agriculture department is an important source of foreign exchange earnings.
There are two kinds of crops, cash crops and food crops. Farmers cultivate food crops to fulfill their needs of food. And they cultivate cash crops for commercial purposes. After wheat, rice is the second staple food in Pakistan.
Rice Exports of Pakistan:
In the quest for opportunities for Rice Exports of Pakistan, we examine rice stocks. According to government estimations total, available stock during December 2021 was 11.43 million tons. After deducting 3.40 million tons for domestic use, 8.03 million tons of rice stocks are available for exports.
Basmati rice shares almost 30% of rice exports for Pakistan. The average export price of basmati rice is $870/ton, and the cost of coarse rice is $490/ton.
Rice yield during the current year (2021-22) is over 9 million tons, whereas it was 8.4 million tons during the last year.
An increase in the production of rice gave a boost to its exports. Rice Exports of Pakistan surged to 19% in the current year. Pakistan’s rice exports touched the target of $594 million during the current year (2021-22), whereas Pakistan exported rice of $499.442 million during (2020-21). It is the growth of almost 19.04%, according to statistics issued by the Pakistan Bureau of Statistics (PBS).
Basmati Rice is one of the famous varieties of rice. Pakistan cultivates as well as export long grain Basmati rice. Most of Basmati rice is grown in some regions of Punjab like Gujranwala, Hafizabad, Sheikhupura, Sialkot, Narowal, Hafizabad, Nankana Sahib, Chiniot, Gujrat, Kasur, and Mandi Bahaudin.
According to the Pakistan Bureau of Statistics (PBS), Pakistan exported Basmati rice worth $206.013 million during the current year compared to Basmati rice exports worth $161.654 last year. Thus, Basmati rice exports increased by 27.44 percent during the current year. The exports of other rice varieties surged from 337.788 million to 388.515 million during the current year. So, these exports increased 15.02%.
Opportunities of Rice Exports of Pakistan:
We’re going to explore opportunities for Rice Exports of Pakistan here. Pakistan is one of the top rice producers and exporters in the world. According to a study report by Food and Agriculture Organization (FAQ), Pakistan supplies almost 10% of the world’s rice output and is the 10th largest rice producer globally. So, there’re ample opportunities for Pakistani rice in the world market.
Gulf Countries, Great Markets for Pakistani Rice:
Gulf countries like Saudi Arabia, Oman, United Arab Emirates, Qatar, Bahrain, Yemen, etc., are great buyers of Pakistani rice. Govt. is trying to increase opportunities of Rice Exports of Pakistan over there. Arab people prefer Pakistani Basmati rice as their food. These countries are not far from Pakistan; that’s another plus point.
In the Middle East, Iran is another great buyer of Pakistani rice. The rice industry depends on Iran for the exports of rice, especially Basmati rice.
The demand for Pakistani Rice in Europe:
The demand for Pakistani rice in European markets has increased by 2021-22. Basmati rice demand has reached 70%. The need for Basmati rice in Italy, Netherlands, France, and Belgium has increased. Markets of these countries are creating tremendous opportunities for Pakistani Basmati and other rice varieties. European countries’ high demand for Basmati rice led to a 10% increase in prices.
Great Opportunity in French Markets:
Europe is an excellent market for Pakistani rice, and Rice Exports of Pakistan is increasing over there. French markets are open for Pakistani rice. France has started to buy Basmati and other varieties of rice from Pakistan. According to United Nations COMTRADE database on international trade, Pakistan exported rice worth $28.86 million to France during 2020. And it has increased by the year 2021.
Competitive Position of Pakistan in Rice Export:
I’m trying to analyze the competitive position of Pakistan in the world market for rice export and explore new opportunities for rice export by using the gravity model of trade. There are plenty of countries where rice is demanded, but Pakistan has no business affiliation with those countries. By exporting rice to those countries, Pakistan can earn sizeable foreign exchange and create job opportunities in the agriculture sector.
Many studies were conducted on potential markets for Pakistani rice. According to one of the studies, there are many countries where Pakistani rice export is zero. So, it needs to establish business affiliations with those countries to sell Pakistani rice.
The main objective of this discussion is to highlight the competitiveness of Pakistani rice and the opportunities for Rice Exports of Pakistan in the world. Rice is an essential source of foreign exchange for Pakistan. In the study experts analyzed the competitiveness of Pakistani rice with the top 10 major rice exporters. According to study results, competitive advantage RCA and RCA# confirms that Pakistan has a competitive and comparative advantage in rice exports compared to other top rice exporters worldwide. The average value of RCA is 66.4% and RCA# 4.27% throughout 2003-2016.
Conclusion:
In this short blog post, we conclude that according to estimations, Pakistan has a great potential of increasing Rice Exports of Pakistan with current importers of Pakistani rice. It can also expand its exports to many other countries like Nepal, Iran, India, South Korea, Japan, with the highest export potential and the highest export potential. Pakistan exceeds its rice exports with UAE, China, Kenya, Saudi Arabia, and Oman exceed.
The results of different studies about Rice Exports of Pakistan show that Pakistan has great potential to increase its foreign exchange earnings and reduce its trade deficit by expanding rice exports.
