ISLAMABAD: Rice production is expected to increase substantially this year, which will be about 63 per cent more than domestic requirement. But the question remains whether the government will be able to provide benefits to the farmers with timely purchase and export. The agriculture ministry has estimated rice production at 6.68 million tons for the year 2009-10 compared to last year’s production of 6.95 million tons, The News has learnt. Rice consumption has been estimated at 2.5 million tons, leaving a surplus of 4.18 million tons. If last year’s carry forward stock of 1.8 million tons is included, surplus rice will be 5.9 million tons.

The Federal Committee on Agriculture (FCA) in October 2009 had stipulated rice production target of 6.4 million tons. Though Pakistan is exporting rice but not to its full capacity as there are some marketing issues with the rice exporters domestically and internationally. It calls for government and private sector’s attention, good management and coordinated efforts.

Exporters normally place their orders in December and January when the farmers had disposed of their paddy and the commodity price is always high.

Agriculture experts believe that the exporters should order in October or November when the farmers and growers have their rice in hand. This could help farmers and rescue them from cruel exploitation by brokers. Placing in time orders would not only benefit small farmers but also earn billions of dollars in foreign exchange for the country.

Internationally, during September to December 2009, average price of basmati rice was $864 a ton, while domestically farmers received $434 a ton. The huge gap of $430 a ton needs government attention to minimize the gap in the best interest of the farmers.

In order to minimize the gap, Rice Export Association of Pakistan (REAP) should bring their export orders in October and November instead of December and January. Besides, it should discourage basmati rice growing in cotton zone and restrict basmati cultivation in Kalar area. Capacity building of PASSCO was also necessary to intervene in the market for paddy procurement on regular basis.

In Punjab during the first week of November 2009 super bamati market price start from Rs750 for 40 kg. However, due to Pakistan Agriculture Services and Storage Corporation (PASSCO) intervention the price went up and is currently at Rs1100-1200 for 40 kg.

In Sindh the market price for super basmati starts from Rs600 for 40 kg and there was no PASSCO intervention. On average, farmers received Rs825 for 40kg from the local market for basmati, as the intervention was limited.

According to the estimates, during the last financial year 2008-09, rice exports stood at 2.6 million tonnes worth $1.98 billion.

The quantity review committee (QRC) has reported 0.44 million tonnes of basmati of $380 million and Irri-6 1.35 million tonnes valuing $525 million. The total export during July-December 2009-10 stood at 1.79 million tonnes that earned about 905 million dollars.

In January 2010 the Economic Coordination Committee of the Cabinet (ECC) allowed PASSCO to export rice, which was widely welcomed by the farmers. This could also encourage farmers to increase rice production.

PASSCO’s performance during 2009-10 has been nominal and its rice purchases of basmati have not exceeded 50,000 tons, which is not even one per cent of the total rice production. Paddy production: According to government paddy production is expected to be around 13 million tons this year.

Paddy or rough rice is harvested from rice fields or rice paddies and transported to processing site. As part of the processing, the protective husk is removed, leaving only the actual rice kernel for consumption.

Global paddy production scenario: Paddy production has been forecast at 678 million tonnes (452 million tonnes, milled basis), world paddy output would be 2 per cent or 11 million tonnes short of the 2008 bumper crop, but would still standout as the second best season in history, the Food and Agriculture Organization of the United Nations (FAO) said in its December 2009 rice market monitor.

It says that yearly production decline would stem from a three percent contraction of plantings to 156 million hectares, compensated slightly by a one percent rise of paddy yields to 4.4 tonnes per hectare.

The slide of World production from the exceptional 2008 outcome would be much on account of Asia where an erratic advancement of the monsoon caused a sharp cut in plantings and output.

Production in Africa is also forecast to drop below last year’s excellent season outcome, but prospects are positive in North America, Latin America and the Caribbean and Europe. Although improved compared to the previous year, output in Oceania remains low relative to the levels reached in the early 2000s.