Rice is one of the most important crops globally and in Pakistan. It is a staple food for over half the world's population. In Pakistan, rice production has decreased significantly from 6,883 thousand tons in 2009-10 to 4,823 thousand tons in 2010-11, a decrease of 29.9%. The imposition of a 17% sales tax on agricultural inputs could further decrease rice productivity and GDP growth from agriculture in Pakistan. Rice plays an important economic and cultural role in Pakistan as a major staple food and export.

2. MICRO ECONOMICS

3. Ammar Siddique
PRESENTATION BY

4. Rice
COMMODITY..

5. Rice Oryza Sativa L. a member of the grass family, along with wheat and
corn, is one of the three crops on which the human species largely subsists.
Rice is now one of the most important crops at the global level, as it is used
as a staple food in most countries of the world and will continue to be for
the foreseeable feature. Rice is intimately involved in the culture as well as
the food ways and economy of many societies. Indica type rice feeds more
than two billion people, predominantly in developing countries. In the
coming 30 years, the world will require 70% more rice than that it requires
today. According to conservative estimates, 800 million tons of rice will
have to be grown with considerate reduction in the input of agrochemical
under sustainable conditions. It has been estimated that half the world's
population subsists wholly or partially on rice. Ninety percent of the world
crop is grown and consumed in Asia. American consumption, although
increasing, is still only about 11 kg per person annually, as compared with
90–181 kg per person in parts of Asia.
INTRODUCTION..

6. According to the most widely accepted theory, rice cultivation
originated as early as 10,000 BC in Asia. Archaeological evidence
shows that rice was grown in Thailand as early as 4000 BC, and
over the centuries spread to China, Japan, and Indonesia. By 400
BC rice was cultivated in the Middle East and Africa. The
invading armies of Alexander the Great probably introduced rice
to Greece and nearby Mediterranean countries around 330 BC.
Rice was brought to the American colonies in the early 1600s, and
commercial production began in 1685.
HISTORY…

7. According to survey, Agriculture Sector recorded a growth of 1.2% in 2010-
2011, but need support to boost export. The disastrous flood in July 2010
destroyed two major crops, i.e. rice and cotton; this will greatly affect their
yearly growth rate
. According to the Economic Survey 2010-11 launched here Thursday agri-
sector has lost significant growth momentum as its growth slowed down to
2.7 percent in the decade of 2000s as against 4.4 percent in 1990s and 5.4
percent in the 1980s. Major crops remained the victim of natural calamities
during the last few years and three out of last four years witnessed negative
growth in the major crop sector.
ECONOMIC SURVEY 2010-11

8. RICE PRODUCTION

9. Rice is an essential cash crop and one of the main export items of the
country.
It accounts for 6.4
percent of value added in agriculture and 1.4 percent in GDP.
Pakistan grows high quality rice to meet
both domestic demand and for exports.
Area sown for rice is estimated at 2883 thousand hectares, 2.7
percent less than last year.
The size of the crop is estimated at 6883 thousand tons 1.0 percent less than
last year.
In Punjab sugarcane area was also shifted to rice crop, as the growers were dis
couraged due to
non‐payment of their dues in time by the sugar mills.
GLIMPSE ABOUT RICE

10. WORLD RICE PRODUCTION

11. BASMATI RICE
Basmati rice is the major type of rice in pakistan. Basmati Rice is a variety of
long grain rice grown in India and Pakistan, notable for its fragrance and
delicate, nuanced flavour. Its name means “the fragrant one” “the soft rice,”
a”my smile”. Pakistan is the second largest producer and exporter of basmati
rice after india. it is primarily grown through paddy field farming in the
Punjab region.
RICE IN PAKISTAN

12. A number of varieties of basmati rice exist. Traditional types include
Basmati-370,
Basmati-385
Basmati-Ranbirsinghpura(R.S.Pura),
while hybrid basmati varieties include Pusa Basmati 1 (also called ‘Todal’, because
the flower has awns). Fragrant rices that are derived from basmati stock but are not
considered true basmati varieties include
PB2 (also called sugandh-2),
PB3
RH-10.
VARIETIES OF BASMATI RICE

13. PRODUCTION IN PAKISTAN

14. AREAS OF PRODUCTION

15. Rice production has decreased from
6,883 thousand tons in 2009-10 to
4,823 thousand tons in
2010-11, showing a decrease of 29.9
percent.
RICE PERCENTAGE

16. RICE MARKET

17. Pakistan is losing its rice export market in Iran due to non-availability of
banking channels between the two countries.
Meanwhile, Rice Exporters Association of Pakistan (REAP) has demanded
of the Ministry of Finance, Commerce and the State Bank of Pakistan to
mull over this issue by opening branches of some Pakistani banks in Iran with
an aim to facilitate rice exporters in time to come. Rice exports may decline
by the end of this fiscal year due to slowdown in production. The devastating
floods in the country have caused severe damage to the agriculture and
cropping sector, said another exporter.
The value of rice exports for the FY11 is likely to decline to $2.3 billion, he
said.
It must be mentioned here that the production of rice is estimated to remain
3.5 million metric tons during FY11 compared with last year’s production
level of 6.7 million metric tons.

18. Long grain white rice
Thai 100% B 590 - 600
↑
Viet 5% 555 - 565 ↑
Indian 5% NQ
↔
Paki 5% 495 - 505
↔
US 4% 590 - 600 ↓
Uruguay 5% 570 - 580
↑
Argentina 5% 570 - 580
↑
Long grain parboiled rice
Thai 100% 610 - 620
↑
Paki 5% 515 - 525 ↓
Indian 5% NQ
↔
US 4% 630 - 640
↔
Brazil 5% 540 - 550
↔
Uruguay 5% 545 - 555
↔
PRICE DETERMINATION

19. Long grain fragrant rice
Thai Hom Mali 100%
1035 - 1045 ↔
Viet 5% 705 -
715 ↓
Indian basmati 2%
1140 - 1150 ↔
Paki basmati 2%
870 - 880 ↔
Brokens
Thai A1 super 480 - 490
↑
Viet 460 - 470 ↑
Paki 420 - 430
↔
Indian NQ ↔
Egypt medium grain
475 - 485 ↔
US pet food 325 - 335
↔
Brazil half grain 425 - 435
↔

20. Medium grain milled
US Cal rose 4% 870 - 880 ↔
Egypt 6% NQ ↔
All prices USD per ton, FOB vessel

21. SALES TAX CONTRIBUTION

22. The imposition of 17 percent sales
tax on agricultural inputs will add
to the troubles of the government
as the overall contribution of
agriculture sector in GDP growth
may decline by 2-3 percent.

23. According to agricultural experts the tax
would affect the overall agricultural
productivity of Pakistan. The 17 percent
sales tax on agricultural inputs including
fertiliser, pesticides, tractors and other
inputs would cost the poor growers
heavily, analysts maintain.

24. the contribution of the agriculture sector
to GDP growth is 24 percent that may
decline to 19-20 percent after this tax is
imposed”. Mughal said that with this
additional burden of Rs 70-80 billion on
the agriculture sector, the total number
of people living below the poverty line
would increase from 80 million to 110
million.

25. CONCLUSION..

26. In Pakistan’s agrarian economy rice plays
multifarious roles. Firstly, it is second staple food
and contributes more than 2 million tonnes to
our national food requirement. Secondly, rice
industry is an important source of employment
and income for rural people. Thirdly, it
contributes in the country’s foreign exchange
exchequer

27. THANKYOU