The USDA Predicts a 40% Surge in Pakistan's Rice Exports, Potentially Earning an Extra $1 Billion in Foreign Sales. Additionally, a Strong Wheat Harvest and Improved Cotton Output Reduce Import Dependence, Bolstering Economic Growth Prospects for FY23-24.
The Agriculture Sector Is Expected to Play a Vital Role in Achieving the Targeted 3.5% Economic Growth Rate for FY24.
The Increase in Rice Exports May Be Attributed to New Export Markets Like Russia and Mexico, Along With Rising Exports to Indonesia.
Furthermore, Pakistan Has Witnessed a Remarkable Recovery in Rice Production, Estimated at 9 Million Tons for FY24, in Contrast to the Previous Fiscal Year's Poor Harvest of 5.5 Million Tons Due to Flooding.
The USDA Report, Titled 'Grain and Feed Update,' Anticipates Rice Exports of 4.8 Million Tons, Comparable to the Record Achieved in 2021-22, When Production Reached a Record High of 9.3 Million Tons.
While the Global Agriculture Information Department Forecasts 5 Million Tons of Rice Exports, the USDA Slightly Lowers Its Estimate for the 2022-23 Marketing Year to 3.4 Million Tons, Down from the Previous Projection of 3.7 Million Tons.
Based on Official Statistics, Rice Exports Were Valued at $2.14 Billion in FY22-23, Down by $364 Million Compared to the Previous Fiscal Year. In Terms of Quantity, Rice Exports Declined by 25% in FY23, With 3.717 Million Tons (Including Basmati) Compared to 4.97 Million Tons in the Previous Year.
In the Wheat Sector, the USDA Maintains Its 2023-24 Supply and Demand Forecasts at 33.07 Million Tons and 30.20 Million Tons, Respectively. Although the Government Hasn't Issued Public Tenders Yet, Private Importers Have Purchased at Least 300,000 Tons of Russian Wheat.
Wheat Production Is Estimated to Reach 28 Million Tons in FY24, Compared to 26.40 Million Tons in FY23, With Expectations of Continued High Production in FY24-25 Due to Adequate Water Availability.
Cotton Production Has Seen a Remarkable 71% Increase in the First Half of the Current Season, Reaching 5.02 Million Bales Compared to 2.94 Million Bales in the Same Period Last Year. Favorable Weather Conditions, Absence of Flooding, and Other Factors Have Contributed to This Turnaround.
The Government Forecasts Cotton Production of 9 to 10 Million Bales This Year, a Significant Increase From the Previous Year's Approximately 5 Million Bales, Reducing the Need for Imports. Pakistan's Cotton Consumption Requirement Stands at 15 Million Bales.
In FY23, Cotton Imports Were Valued at $1.68 Billion, Compared to $1.83 Billion in FY22.
The Ministry of Finance Expressed Optimism About the Economic Outlook, Citing the Prosperous Cotton Crop as a Positive Indicator for the Future."
