Rice is an important food as well as a cash crop of Pakistan. It occupies 11% of the cropped area in Pakistan and is planted on about 5.7 million acres and produces about 4.6 million metric tonnes of milled rice. Approximately, 55% of the production is consumed domestically; whereas, 45% is available for export and it amounts to 11% of the total rice trade volume in the world.
It accounts for 5.7 percent of the total value added in agriculture and 1.3 percent to GDP. Production of rice during 2004-05 is provisionally estimated at 4991 thousand tonnes, which is 2.9 percent higher than last year.
Pakistan is the 4th largest rice exporting country in the world after Thailand, Vietnam and United States. About 0.55 million metric tonnes of basmati rice are exported to the Middle East countries, Europe and America, whereas, 1.5 million metric tonnes of medium/coarse grain varieties are exported to different countries of Asia and Africa. The major buyers are Saudi Arabia, Iran (Islamic Rep.) Sultanate of Oman, Afghanistan, Kenya, Dubai and Yemen.
Pakistan produces two types of rice varieties which are also exported. A special variety known as basmati rice has its traditional markets where it faces some competition (but not perfect) with Indian rice. The export of other variety of rice faces competition from other countries and this is exported to Asian and African countries. Even two rice producing countries of Sri Lanka and Indonesia also import it. The special variety is exported to high-income Middle East countries and U.K.
Punjab is the biggest producer of rice in the country and contributes 52% to national production and the provinces of Sindh, Balochistan and NWFP contribute 36%, 9% and 3% respectively. Ninety four percent of basmati rice is produced in the Punjab.
After the implementation of the rules and regulations of the WTO, the world business scenario has totally changed. Now there is more competition than before. In this scenario only those products will capture the markets which are good in quality and at the same time competitive in terms of price.
Pakistan has all the required basic ingredients such as fertile land, irrigation water, hard working farmers and certified seeds recommended for certain areas. The need of the hour is to utilize them to their full potential. In fact, our agriculture is characterised by a preponderant majority of small and marginal farmers holding less than two hectares of land. For the large majority of farmers, the gains from the application of science and technology in agriculture are yet to be realised.
Farmers, therefore, require support in terms of development of infrastructure as well as extension of improved technologies and provisions of requisite inputs at reasonable cost. Pakistan's share of world's agricultural trade is very low. There is no doubt that during the last 30 years, Pakistan's agriculture has grown at a reasonable pace with some booms and recessions, but with stagnant and declining net cropped area it is indeed going to be a formidable task to maintain the growth in agricultural production.
The farming community is not well educated. They don't know the latest advancements which are taking place in the world. The government should make serious measures in order to make the farmers aware about the latest technology and other pre-requisites as early as possible. Pakistan has a very narrow base of agricultural exports (rice and cotton) which is directed largely to South East Asia (raw cotton) and the Middle East (rice).
The opening of rice markets in Indonesia, Japan, and Korea is likely to create a major gain for Pakistan. Nevertheless, this region promises a huge potential market of fruits and vegetables for Pakistan. Gaining market access in the developed countries is also rather difficult because Pakistan must comply with high quality standards and also cross the barrier of sophisticated sanitary and phytosanitary (SPS) measures.
POLICY OPTIONS:
-- There is a need to diversify Pakistan's agriculture and improve the food handling capacity in terms of transportation processing and storing etc.
-- It is expected that Pakistan's agriculture may become lose under the Agreement on Agriculture (AoA), until and unless there is a major shift at home in the policies.
-- In the light of SPS agreement substantial measures are needed for enhancing agricultural productivity to compete with the international market.
-- Pakistan cannot blame the WTO for its own shortcomings. Pakistan should take the agricultural sector seriously and the government should make such policies, which are friendly for the farmers. Agriculture development should be the primary focus ofExport of agricultural commodities: threats and opportunities
Asif Maqbool the government's plan
s of development. Pakistan should develop its agriculture on modern lines in order to keep pace with the emerging global scenario in agriculture.
-- As we are living in a competitive and compelling environment, if Pakistan has to compete in the world export market, to increase its export of agriculture commodities then it has to be more efficient, more productive and cost effective in its agriculture production.
-- Pakistan should invest in human resources to spread education and develop expertise to properly understand the issues related to WTO and agriculture.
-- The type of rice Pakistan grows is not in demand in the East Asian countries. We have to substitute the existing varieties grown in Pakistan with those in high demand in the global market.
-- Pakistan has to do many things, particularly in the area of quality, packaging and promotion, to acquire a reasonable share of the market in developed countries.
-- Last not the least Pakistan should search more markets for the export of rice. It is the need of the hour to reorganise the present marketing system. If we want to survive in this free trade then we should develop our present infrastructure and should adopt the rules and regulations of WTO.
(The author is currently working at the WTO Cell, University of Agriculture, Faisalabad)
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