10 percent drop likely in rice production

Pakistan is likely to miss the rice production target set for the current fiscal year (2011-12), by 10 percent, due to floods and reduction in crop sowing area, sources told Business Recorder. Production target of 6 million tons was set for the current fiscal year. However, hardly 5.5 million tons of rice is expected to be produced.
The country was expecting to export rice worth $2.3 billion this year. But decrease in production may negatively affect exports by about $300 million, sources said. According to the Economic Survey of Pakistan 2010-11, rice is the second largest staple food crop in the country and has been a major source of export earnings in recent years. It accounts for 4.4 percent of value-added agriculture produce and 0.9 percent in GDP. Pakistan grows high quality rice to meet both domestic demand and export needs.
Sources said that about 1.2 million tons of rice has been exported during last 5 months, against 1.4 million tons during the same period of last year, registering a decline of 0.2 million tons ie 13 percent. This year's floods in Sindh, reduction in sowing area in Punjab and increase in input costs are being attributed as the major reasons behind decline in rice production.
Out of total 5.5 million tons rice produced, according to the revised estimates for the current fiscal year, 3 million tons would be used for domestic consumption while the remaining 2.5 million tons would be exported, which may add up to $2 billion to the national kitty in terms of foreign exchange earnings, whereas in 2010-11 total rice exports amounted to $2.2 billion.