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Pakistan: Punjab Basmati Rice Value Chain

Sovereign (Public) Project | 47166-001 Status: Closed

ADB is helping improve basmati rice productivity and quality in Pakistan by piloting innovations on improving basmati seed variety and developing value chain with private sector participation and links of farmers to processing and markets. See the article and video on this technical assistance.

Project Details

Project Officer
Sato, Noriko Central and West Asia Department Request for information
  • Pakistan
  • Agriculture, natural resources and rural development
Project Name Punjab Basmati Rice Value Chain
Project Number 47166-001
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8578-PAK: Punjab Basmati Rice Value Chain
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production

Gender Equity and Mainstreaming

This technical assistance (TA) is the outcome of wide-ranging stakeholder consultation with the Government of Pakistan and Punjab government agencies, public and private agriculture research institutions, basmati rice farmers, traders, exporters, private associations, and the International Rice Research Institute (IRRI).

Basmati rice famous for its aroma, long grain, better cooking and eating quality is a leading foreign exchange earners of Pakistan, which captures more than two-thirds of the world's basmati production. In 2012, Pakistan earned about $1 billion from basmati exports of 1.5 million tons. Basmati is grown mainly in Pakistan's Punjab province. In fiscal year (FY) 2012, 65% of Punjab's total rice area, or 1.1 million hectare, was devoted to basmati with a production of about 2 million tons.

The country's competitive edge in the basmati world market, however, has been eroding in the recent years because of productivity and quality constraints. Historically, Pakistan has been the world's leading and major supplier of basmati rice. During the period July December 2012, basmati exports declined by 31% (from 349,970 tons to 239,765 tons) compared to the same period in the previous years. This came after India lifted a ban on its rice exports in 2012 and sold the commodity at a price lower than Pakistan's about $100 cheaper per ton against Pakistan's $1,100-1,150 per ton. Meanwhile, demand for basmati has been increasing worldwide. Pakistan's basmati value chain needs to be strengthened to meet rising international demand and maintain its premier lead status.

The major bottleneck in Pakistan's basmati value chain is at the upstream segment, or farm production. High production costs and declining yield of current basmati varieties are making its cultivation a less profitable venture to Punjab rice farmers, resulting in some farmers shifting to non-basmati varieties for better yields.

Project Rationale and Linkage to Country/Regional Strategy Overcoming the major problems affecting Punjab's basmati rice is urgently needed for Pakistan to regain and sustain its competitiveness in the world market, improve the subsector's foreign exchange earnings, and ensure higher incomes for basmati farmers and other stakeholders in the value chain. The TA will focus on measures that meet the following criteria (i) tangible results achievable within 2 3 years; (ii) complementing and adding value to ongoing activities of public and private sector stakeholders; and (iii) having the potential to significantly increase the yields of basmati rice, improve the efficiency of the upstream segment of the basmati value chain, and integrate the upstream more effectively with the midstream and downstream segments of the value chain.
Impact Higher incomes of basmati rice farmers in Punjab and higher export earnings from basmati
Project Outcome
Description of Outcome Improved basmati rice productivity and quality in TA sites
Progress Toward Outcome Progress toward the outcome is on track. Overall the TA activities are on the right direction and successfully implemented. The TA completion date was extended to 31 December 2018; the implementation has been expediting through planned activities.
Implementation Progress
Description of Project Outputs

1. Improved basmati seed varieties

2. Improved farming and postharvest practices

3. Improved research and service capabilities

Status of Implementation Progress (Outputs, Activities, and Issues)

Considerable progress was made in the TA implementation during 2017. The research projects led by the research institutes made good progress, which contributed to achieving the TA output targets. Out of the 11 TA output targets, six have been fully achieved, two have mostly been achieved, and three have partially been achieved.

The output 1 relates with the _improved basmati seed varieties_ having five targets. Three advance lines of basmati rice having traits of high-yielding and bacterial leaf blight (BLB)-resistance have been submitted to Pakistan Agricultural Research Council (PARC) for national uniform yield trial (NUYT) in 2017. Similarly, two high-yielding BLB-resistant lines with additional International Rice Research Institute (IRRI) genes, two advance lines of basmati rice having traits of high-yielding, BLB resistance and droughts tolerance have been developed. Research of developing advance lines for sub-mergence-tolerance will be initiated in 2018 rice season. Two advance lines having traits of high-yielding and submergence tolerance will be ready by 15 December 2018.

The output 2 relates with _improved farming and postharvest practices_. The demonstration of direct seeding of rice (DSR) technology and machinery to 1,000 farmers was completed and target was fully achieved in 2017. The third activity of demonstrating technology and machinery on 10,000 were achieved during rice season of 2018.

The output 3 relates with _improved research and service capabilities. The targets of training of scientists at IRRI and training of trainers for male and female farmers in DSR technology for basmati rice were fully achieved. Targets of arranging four workshops were also achieved.

Geographical Location Punjab
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design ADB fielded a TA consultation mission during 26 February 5 March 2013 to identify key challenges and opportunities for basmati rice value chain development in Punjab, and a fact-finding mission during 18 23 August 2013 to finalize the TA design and its implementation arrangements. The missions consulted and interacted with the Economic Affairs Division; Pakistan Agricultural Research Council; National Agricultural Research Center; Planning and Development Department, Punjab; Finance Department, Punjab; Department of Agriculture, Punjab; Punjab Agricultural Research Board; Rice Research Institute, Kala Shah Kaku; National Institute for Biotechnology and Genetic Engineering; Nuclear Institute for Agriculture & Biology; basmati rice farmers, traders, exporters, private associations; the International Rice Research Institute and development partners.
During Project Implementation Punjab Agricultural Research Board; Rice Research Institute, Kala Shah Kaku; National Institute for Biotechnology and Genetic Engineering; Nuclear Institute for Agriculture & Biology; basmati rice farmers; private service providers; and the International Rice Research Institute will actively participate in the TA implementation. Pakistan Agricultural Research Council will support TA evaluation. Economic Affairs Division; Pakistan Agricultural Research Council; National Agricultural Research Center; Finance Department, Punjab; and Department of Agriculture, Punjab will be consulted for policy issues.
Business Opportunities
Consulting Services The TA requires 24 person-months of international consulting services on plant breeding, biotechnology, and agriculture engineering, and 27 person-months of national consulting services on TA coordination support. ADB will engage IRRI in providing the international consulting services using single source selection because of IRRI's long track record and internationally recognized research, training, and knowledge transfer works in developing new rice varieties and rice crop management techniques that help rice farmers improve the yield and quality of their rice in an environmentally sustainable way. Single source selection is further justified since the TA requires the provision of specific germplasm from IRRI to Pakistan. ADB will engage the national TA coordinator on an individual basis.
Procurement N/A
Responsible ADB Officer Sato, Noriko
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, CWRD
Concept Clearance 10 May 2013
Fact Finding 18 Aug 2013 to 23 Aug 2013
Approval 13 Dec 2013
Last Review Mission -
Last PDS Update 20 Sep 2018

TA 8578-PAK

Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2013 06 Mar 2014 06 Mar 2014 31 Dec 2016 31 Dec 2018 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 200,000.00 0.00 0.00 0.00 1,200,000.00 13 Dec 2013 971,875.09

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Tender Title Type Status Posting Date Deadline
Editing Specialist Individual - Consulting Closed 03 Aug 2018 09 Aug 2018
Field Coordinator, National Individual - Consulting Closed 28 Apr 2018 04 May 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Research and Development Technical Assistance 8578 06 Feb 2015 International Rice Research Institute (Philippines) 10th Floor Suite 1009 Security Bank Center 6776 Ayala Avenue, Makati City, Philippines Punjab Agricultural Research Board 579,557.00

Procurement Plan

None currently available.