Pak1stani
Prime Minister (20k+ posts)
Foreign direct investment down
Total Export down
GDP growth lowest in South Asia
Slump in Basmati Rice Exports Causing Problems for Pakistan
A slump in the export of basmati rice is having a damaging effect on the Pakistani economy. It has exacerbated rural poverty with often catastrophic consequences for small farmers. The causes of the slump are complex and both national and provincial governments are facing criticism for a failure to act.
Pakistan’s exports of basmati rice have declined by 40% in the past four years, from 1.1mn tons in 2011 to 676,630 tons in 2015. As a consequence, the domestic market has been overwhelmed by an unmanageable glut, with an accumulated surplus of 1mn tons. This has driven down the domestic price of rice by 50%, from Rs4500 per maund (a measure equal to 40 kilos) in 2012 to Rs2200 per maund in 2015. If the surplus is not reduced, there are fears of a further collapse in domestic prices, which would deter farmers from growing basmati.
In Pakistan basmati has traditionally been an export crop. In recent times, 60% of the total annual production of 2mn tons produce has been sold abroad, generating around $2bn for the national economy, boosting foreign currency reserves and contributing to a healthy balance of payment (BoP). The basmati trade has played a major role in the alleviation of rural poverty, so much so that the rice crop is seen as too important to be left to the mercy of market forces.
In previous years, the Pakistani government gave the task of removing the glut from the domestic market to the Pakistan Agriculture Storage and Supplies Corporation (Passco) and to the Trading Corporation of Pakistan (TCP). It seems, however, that neither organization is now fulfilling this role, and the national government has been accused of neglecting its duty to regulate the market, both in terms of inputs and export of the produce. The responsible departments of the federal government, the Trade Development Authority of Pakistan (TDAP) and the Ministry of Commerce, have failed to act, as has the provincial government agriculture department of Punjab, to which responsibility for agriculture was devolved under the 18th constitutional amendment.
http://www.internationalpolicydiges...i-rice-exports-causing-problems-for-pakistan/
Total Export down
GDP growth lowest in South Asia
Slump in Basmati Rice Exports Causing Problems for Pakistan
A slump in the export of basmati rice is having a damaging effect on the Pakistani economy. It has exacerbated rural poverty with often catastrophic consequences for small farmers. The causes of the slump are complex and both national and provincial governments are facing criticism for a failure to act.
Pakistan’s exports of basmati rice have declined by 40% in the past four years, from 1.1mn tons in 2011 to 676,630 tons in 2015. As a consequence, the domestic market has been overwhelmed by an unmanageable glut, with an accumulated surplus of 1mn tons. This has driven down the domestic price of rice by 50%, from Rs4500 per maund (a measure equal to 40 kilos) in 2012 to Rs2200 per maund in 2015. If the surplus is not reduced, there are fears of a further collapse in domestic prices, which would deter farmers from growing basmati.
In Pakistan basmati has traditionally been an export crop. In recent times, 60% of the total annual production of 2mn tons produce has been sold abroad, generating around $2bn for the national economy, boosting foreign currency reserves and contributing to a healthy balance of payment (BoP). The basmati trade has played a major role in the alleviation of rural poverty, so much so that the rice crop is seen as too important to be left to the mercy of market forces.
In previous years, the Pakistani government gave the task of removing the glut from the domestic market to the Pakistan Agriculture Storage and Supplies Corporation (Passco) and to the Trading Corporation of Pakistan (TCP). It seems, however, that neither organization is now fulfilling this role, and the national government has been accused of neglecting its duty to regulate the market, both in terms of inputs and export of the produce. The responsible departments of the federal government, the Trade Development Authority of Pakistan (TDAP) and the Ministry of Commerce, have failed to act, as has the provincial government agriculture department of Punjab, to which responsibility for agriculture was devolved under the 18th constitutional amendment.
http://www.internationalpolicydiges...i-rice-exports-causing-problems-for-pakistan/
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