Punjab on track to harvest second-highest rice crop in five years

LAHORE: Punjab province, the biggest rice producer in Pakistan, is expected to harvest 5.5 million tonnes of rice this year, the second highest in the last five years, official data showed on Tuesday.

Rice is one of the major crops in the province during the Kharif season, and its production is being boosted by an increase in the area under cultivation.

The provincial agriculture department said the rice cultivation area has increased by 16 percent to 5.82 million acres, surpassing the target of 5.0 million acres. The rice yield is also expected to improve by around 10 percent compared to the previous season.

With higher rice production and a favorable global market, the province has planned to export two billion dollars worth of rice this year, which would account for two-thirds of the total expected exports of three billion dollars. To meet the demand of exporters, a project has been launched to promote responsible pesticide use and address traceability issues.

According to a report, Pakistan's rice exports totaled $2.14 billion during the fiscal year 2022-23, down from $2.51 billion in the corresponding period of FY 2021/22. Official statistics show that rice exports declined 25 percent in terms of quantity during FY 2022/23.

Rice exports, including basmati varieties, totaled 3.717 million tonnes in FY 2022-23, compared to 4.97 million tonnes in the previous fiscal year.

The 2023-24 rice export forecast has been reduced to 4.8 million tonnes, which would still be a 40 percent increase over the current marketing year. This forecast is in line with the record 4.8 million tonnes exported in FY 2021/22, when production was a record high of 9.3 million tonnes.

The local rice harvest has just begun in earnest, and initial yield reports indicate that the projected national crop of 9.0 million tonnes will be achieved. Positive crop prospects, good price competitiveness in the world market, and India's rice export ban have created outstanding potential for rice exports.

Mexico and Russia have recently renewed market access for Pakistani rice after many years. Pakistani rice exports to Indonesia have also increased this year, in addition to other markets. Land-based rice trade with Afghanistan, Iran, Russia, and Central Asian states also has great potential. Informal rice trade with Iran is estimated to be over $700 million. A barter trade mechanism, if implemented, would ensure the viability of land-based trade and practical steps could be taken to increase trade volume with Russia, Iran, and Afghanistan.

Rice exports during the first nine months of the current marketing year (November-October) were around 3 million tonnes, compared to 4.1 million tonnes during the corresponding period of the last marketing year. Considering this export pace, the rice export estimate for FY 2022-23 has been reduced from 3.7 to 3.4 million tonnes.