Import of rice from India and promotion of hybrid rice by the private sector instead of Basmati rice would badly curtail rice exports through which the national exchequer earns nearly $3 billion every year.

production of rice in the current year in the country is 6.8 million tons while total consumption of rice in Pakistan is 2.8 million tons therefore Pakistan has 4 million tons surplus rice for exports worth around $3 billion".

He said that out of 6.8 million tons, total production of Basmati rice is around 4.3 million tons while the remaining 2.5 million tons is of Irri-6 rice.

Pakistan, a rice exporting country, imported Basmati rice from India soon after the liberalisation of trade between the two South Asian neighbours.

The main reason for rice imports from India was the fact that it was cheaper:

According to a top official of the Ministry of Food Security and Research "total in India rice production cost is almost half that in Pakistan due to massive subsidies to the farmers by the Indian government.

The high level official on condition of anonymity stated that cheaper rice from India would badly hit local production, causing huge losses to both exporters and farmers.

He said that rice imports took place soon after the announcement of 636 negative items' list prepared by the Ministry of Commerce.

Rice, interestingly, has not been included in the 16 items short-listed by the Ministry as part of the negative list of imports from New Delhi.

Sources further revealed that Pakistan's private sector promotes hybrid rice in the country instead of Basmati rice.

He said that promotion of hybrid rice would also reduce production of Basmati rice, which would directly affect rice exports, as hybrid rice has no international market.

He said that farmers prefer hybrid rice because of its high yield.

"If the government fails to control the promotion of hybrid rice in the country it would decrease local Basmati production which has a higher value in the international market," he said.

Copyright Business Recorder, 2012

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