Contents

Intro Rice Sector............................................................................................................................................ 1

Production..................................................................................................................................................... 1
Types of rice’s ............................................................................................................................................... 2
Decrease in demand: .................................................................................................................................... 3
Increase in demand:...................................................................................................................................... 3
Market structure: .......................................................................................................................................... 3
Price elasticity of wholesale rice. .................................................................................................................. 4
Price elasticity of farm gate rice. .................................................................................................................. 4
Export: ........................................................................................................................................................... 4
Brand: ............................................................................................................................................................ 4
Gdp: ............................................................................................................................................................... 4

Intro Rice Sector

 Pakistan is the 4th largest producer of rice following China, India, and Indonesia
 Rice is the major export product of Pakistan following wheat, cotton.
 Rice export earns about 13% of the country’s foreign exchange making it the second most
important source of foreign exchange
 Rice is cultivated over 10% of total cropped area of Islamic republic of Pakistan.

Production
 rice production holds an important position in the country’s agriculture sector and
contributes 3.2% to the total value added in agriculture.
 The provincial shares of production of rice in percentage i.e. Punjab 50.7 %, Sindh 38.8 %,
NWFP 2.3 %, and Baluchistan 8.2 %.
 PROVINCE WISE PRODUCTION
nwkp
balochistan
2%
8%

panjab
51%
sindh
39%

year wise rice productoin(000 tons)

8000 7442
7002.8 6849.3
6801.6
7000

5798.1
6000 5535.9

5000

4000

3000

2000

1000

0
2013 2014 2015 2016 2017 2018

Types of rice’s
 Pakistan is producing around 2.5 Million MT of basmati rice. Basmati is a premium long
grain variety of rice which is highly valued for its aroma and flavor and has a big demand in
international market.
 Other varieties of rice are competitive in international market due to good quality and lower
prices.
Decrease in demand:
In the year 2008, the importing countries purchased huge quantities of rice on the perception that
international prices would go up. Due to availability of stocks in the importing countries, demand of
rice has decreased considerably.

Increase in demand:
 increasing world populations has resulted in increased rice demand.
 Climate change is one the biggest factor in low production which leads to increase in
demand as well
 Demand of Pakistani rice has increased due to its special fragrance, color and quality
across the world.

The planet population is observed to grow faster than the production of food including rice. Further
limitations to food production include things such as drought, bad weather and low inefficient food
production and processing techniques.

Market structure:
 Basmati enjoys monopoly in the internationals market due to its quality characteristics
strong aroma taste.
 The recent exports of rice from Pakistan are almost US $2.0 billion dollars which is around
10%oftotal exports of Pakistan.
 The domestic demand of rice in Pakistan is 2.2 million tones which makes 4 million tons of
rice available for exports.

Basmati enjoys monopoly in the internationals market due to its quality characteristics strong
aroma taste and texture and grain elongation on cooking and the world is ready to pay a premium
for this.

The recent exports of rice from Pakistan are almost US $2.0 billion dollars which is around
10%oftotal exports of Pakistan. The domestic demand of rice in Pakistan is 2.2 million tones which
makes 4 million tons of rice available for exports. Africa is the major rice importer of the world with
a total import of 1.4 million tons per annum. Irri6 rice of Sindh widely been exported to African
countries. Pakistan exports 80 per cent Super Basmati rice to European Union. The average price of
Irri6 is Rs. 32,000 per ton in Pakistan and export price is US$625 per metric ton. The export price of
Parboiled rice is US $1,150 per metric ton.
Price elasticity of wholesale rice.
 Price elasticity of basmati rice wholesale price with respect to export price is calculated around
0.98.
 Price elasticity of non-basmati rice in wholesale price with respect to export price is calculated
around 1.26.
 It means If export price Is increased by 1 percent it will have effect 0.98 percent on wholesale
prices for basmati and 1.26 for non-basmati.

Price elasticity of farm gate rice.

 Price elasticity of basmati rice farm gate price with respect to wholesale price is calculated
around 1.12.
 Price elasticity of non-basmati rice farm gate price with respect to wholesale price is calculated
around 0.82.
 It means If wholesale price Is increased by 1 percent it will have effect 1.12 percent on farm gate
prices for basmati and 0.82 for non-basmati.

Export:
In last 11 months of the financial year 2017-18, basmati rice exports grew by 24.14 per cent as
compared the exports of the corresponding period of last year.

Brand:
Mostly Pakistani exporting companies are selling rice without any brand name. Due to this the
exporters do not get good price of even high quality product

Gdp:
0.7 contribution of rice in gdp.