Pakistan : Punjab Basmati Rice Value Chain

Agriculture, natural resources and rural development / Agricultural production

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 JulyDecember 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.

Higher incomes of basmati rice farmers in Punjab and higher export earnings from basmati

Improved basmati rice productivity and quality in TA sites

1. Improved basmati seed varieties

2. Improved farming and postharvest practices

3. Improved research and service capabilities

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.

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.