LAHORE: Rice growers and exporters both are enjoying a win-win situation this season mainly due to favourable weather in the country that led to a good crop and a ban on rice exports by the Indian government due to local high food inflation.
The cost of production for rice registered around 35pc increase as per estimates of the Punjab Crop Reporting Service. The per acre cost of Basmati, mostly sown in Gujranwala division, at farm gate shot up from Rs69,677 in the crop year 2022-23 to Rs106,389 in the 2023-24.
The cost includes ploughing, planking, leveling, seed and sowing, watering, compost (both urea and DAP), labour, pesticides, weedicides, harvesting, threshing and transport as well as a part of administrative expenses.
At an average per acre yield of 41 maunds, the net revenue for the farmer has been around Rs200,000 as particularly Kainat (1121) variety was sold at a mean rate of Rs4,900 per maund throughout the season.
Last year, the per acre average gross revenue for the farmer was Rs106,025, says the CRS data. It means the rice grower’s per acre income increased by around Rs94,000 or about 47pc.
Kisan Board Pakistan Vice President Amanullah Chathha says those who had sown 1509 and Super Basmati varieties were not that fortunate because the per acre yield of those growers who had planted 1509 variety earlier than the recommended period of time dropped by 50pc, whereas the market rates of both these varieties also did not cross the Rs4,500 per maund mark.
However, rice sector expert Hamid Malik says that not more than 15pc growers had planted the 1509 rice variety early, thus the overall figure of sectoral loss is negligible.
The exporters will be more fortunate this season because the paddy cost for them will be around $70 per tonne less than that of their Indian counterparts as food inflation has badly hit the neighbouring country, forcing New Delhi to ban export of coarse varieties of rice.
“Local exporters will be able to fetch more foreign exchange as international consumer markets are favouring Pakistani rice, particularly the Basmati variety because of quality issues related to Indian rice in the global markets and because of difference in prices of rice in both the countries,” says Malik.
Published in Dawn, December 26th, 2023