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Economic Aspects of Basmati Rice in Pakistan

Shahzadi N, Akhter M, Ali M and Misbah R

Agriculture, industry and commerce are the main sector on which economy of the country relies. The major cash crops of Pakistan are cotton, wheat, rice and maize. Rice is the second most important crop which makes economic prosperity of the growers/farmers as well as earns billions of rupees through its export for country. Rice played a key role in the agro-based and occupied a prominent position in agricultural economy of the country. Pakistan is the 11^th largest producer and 4th largest exporter of rice. Rice accounted for 3.2% of the value added in agriculture and 0.7% of GDP in Pakistan. Two types of rice were under cultivation in Pakistan. Basmati rice was famous in the country due to its excellent cooking quality and good marketing value at national and international levels. Rice was cultivated on an area of 2.847 million hectares during the period 2014-15 showing an increase of 3.1% over last year. Production of rice during the same period was estimated at 6.9 million tons, which was 1.5% higher than last year’s production 6.7 million tons. During the same period, rice export earned foreign exchange of USD 1.848 billion. The importance of Basmati rice as well as export impacts were observed in the review.