Non-textile exports

LAHORE: Planners are realising the potential of non-textile exports. Many non-textile sectors simply need prudent policy changes and no finances to move up. Export performance of the rice and IT sectors after prudent policy changes is testimony in this regard.

The IT exports in December exceeded $303 million and are on their way to achieve their $4 billion target. Rice exports increased 76.5 percent (54.7 percent in basmati and 247 percent in other varieties) in the first half of FY24.

The IT minister Umar Saif expects IT exports to touch $ 10 billion by 2030. Shahzad Malik, the member of the Export Advisory Council (Non-Textile), Ministry of Commerce, is hopeful that rice exports would touch $5 billion in five years.

Much has been written about IT exports but rice is also a success story outside the textile sector that along with IT kept growing without any direct or indirect subsidies. Pakistan rice exports in 2002 were $462 million that in 2023 touched $2.5 billion. Current year rice exports will exceed $3 billion.

Pakistan has two types of rice, Basmati and non-Basmati (IRRI). Basmati rice is a heritage of Pakistan and mainly grown in Punjab. Malik says rice has the potential to reach $10 billion within ten years. He said in agriculture, constant research and development of seeds is key to increase yield. Unfortunately, he added, no research was done after acquiring IRRI type rice grown in Sindh from International Rice Research Institute (IRRI), Philippines in 1960s. Even up to 1990, no replacement of IRRI type rice was developed and yield remained stagnant around 45-50 maunds/acre.

This is despite the fact that Hybrid Rice was developed in 1973 and introduced in China by Prof.Yuan LongPing, also known as “Father of Hybrid Rice”. It was 26 years later that a local enterprise, the Guard group, started field trials of hybrid rice in 1999 through Hunan Rice Research Institute, China.

In 2002, Guard’s first hybrid variety was recommended for cultivation by PARC. Hybrid rice commercialisation started from Sindh province. In the last 25 years, PARC has recommended 12 Guard hybrid rice varieties for cultivation by PARC.

In 2023, Punjab approved 2 open pollinated Varieties (OPV) of rice and 1 extra long grain variety.

Hybrid rice doubled per acre yield from 45-50 maunds to 100-120 maunds/acre increase. Due to double yield, farmer’s income also doubled resulting in farmer’s prosperity. Hybrid rice was also instrumental in poverty alleviation, particularly in rural Sindh.

The country now produces 9.3 million tonnes of hybrid rice, most of which is exported. It has overtaken Basmati as the major rice export variety.

The Member of the Export Advisory Council (Non-Textile), Ministry of Commerce said researchers in the country are now working on development of Guard, working on development of separate hybrid rice seed varieties that are heat, drought and salinity tolerant.

Some domestic seed research companies are also in the final stages of developing extra long grain hybrid rice including Basmati Rice for Punjab.

Besides, there are a number of corporate farming projects that are coming up. The Chinese also launched the first agro project in CPEC phase-II in collaboration with a local company under which it aims to replace 0.4 million tonnes of chili it currently imports from Pakistan.

The advisor said that to build an image of Pakistan as a reliable supply source of rice with continuous surplus production of rice, we must exploit India’s ban on rice export to our advantage. In the past as well, India has banned export of rice. He urged to identify and establish contacts with importers/distributors of FMCG handling international brands for introduction of Pakistan FMCG brands instead of only commodity/private label importers.