Ikhtiar Ahmed Khoso, Regional Business Co-ordinator (SMEDA) Hyderabad said that rice is the second largest produced cereal in the world on which half of the world's population depends. World rice production in 2008 was 685.87 million tones. Asian farmers produce about 90-92 percent of the total, with two countries, China and India, growing more than half the total crop.
Pakistan is 12th largest rice producing country in the world and 3rd largest rice exporting country in 2009, with total export of 3.21 million tons and had an export value of $1,774,460. In Pakistan rice is consumed as a major food item after wheat and is third largest crop after wheat and cotton by acreage. It is annually cultivated on an area of around 7 million acres. Annual rice production averaged at 6.95 million tons in 2008-9. Punjab is the leading producer of rice in the country followed by Sindh, Balochistan and Khyber Pakhtunkhwa.
The estimation of Sindh's rice for 2009 for land cultivation around an area of 1748883.5 acres and production estimated around 2.4 million tons. Around 70 percent of Sindh's IRRI and other verities are exported to Africa and Middle East countries.
He said that in Sindh rice is cultivated in two different geographical areas, ie Northern or upper Sindh (comprising Larkana, Qamber-Shahdadkot, Shikarpur, Jacobabad, Kashmore and Dadu Districts) and Southern or Lower Sindh (comprising Thatta, Badin, and Tando Mohammad Khan Districts.
He was of view that though rice passes from several processes before it reaches to final consumers even then rice produced in Sindh province has not achieved desired per acre yield and milled rice potential due to malhandling at different level and outdated technology in milling industry.
He further said that in Sindh currently two government seed processing units are working one at Sakrand another mini-unit located at Rice Research Institute Dokri. Apart from this, a few multinationals with hybrid seed and some local processing concerns have embarked on opportunity of realising the potential exists in this market. However, the practice currently in vogue among the general farming community is that they still are using the part of their crop produce as seed instead of using the certified seed. Our farmers facing constraints in the commercial adoption of mechanical transplanting and have lack of awareness about maintenance of plant population, therefore, their present plant population is around 50, 000 per acre its almost half than standard. Growers have lack of awareness and habit of using modern combines as growers follow traditional methods specially the use of tractor for threshing that results in increase of broken percentage during milling.
He said that rice mills located in Sindh province are almost outdated as compared to China, Thailand and India due to our ill efficient mechanism of milling the cost of production and broken percentage is high.
The millers are reluctant to investment due to the high mark-up by banks and less facility available for modernisation. There are only countable modern units located, which are equipped with modern silky polishers and parboiled units. The farmers in general and millers in particular have no warehouse facility where they can store their milled rice during recession in market and can possibly protect the paddy during unfavourable climatic conditions.
The millers have no proper accounting system to keep record of in and out of the business. Un-qualified staffs are usually maintaining their cashbooks.
He further said that the Sindh-Balochistan Rice Millers Association and Sindh Abadgar Board is only body to represent the sector. They are not in a position to bring diversified groups at one plate farm so that their issues may be addressed to government and banking sector. This association has not developed the mechanism to let the farmers and millers to know about the international market trends and to help the millers to explore the potential markets.
The farmers, millers and exporters have lack of trust on each other in benefiting them. The miller tries its best to reap the fruit much below the rate approved by the government and same tried best by exporters during up season. Ultimately take millers and farmers to bankruptcy.
He suggested that government can encourage private sector to come forward to make investment in the certified seed production through investment incentives and proposal for installation of seed processing unit through public-private partnership will further enhance the sector to produce good quality rice seed in the province.
He said that low literacy is major disadvantage in the development of agriculture sector of Sindh province, but if customised policy be introduced for the capacity building of entrepreneurs.
He further suggested that banks should come forward to announce the personalised financing policy for rice milling sector under the supervision of State Bank of Pakistan. The finance scheme should include the up-gradation of existing infrastructure with the modern silky polishers and parboiling units. The rate of mark-up may be revisited to encourage the sector so that millers should also register the mills under quality certification.
He suggested that millers should also update their manual accounting process into computerised accounting system to keep record of every business transaction.
He further suggested that association is the key player in the development of rice milling sector. Rice millers need to bring all of the members at one plate form to address their issues. They should come out with clear cut agenda for the development of sector. They should enhance their liaison with government and banking sector so that their issues may be addressed at large.