The problem in context

Pakistan's is primarily an agro-based economy, with the agriculture sector contributing around 25% towards GDP. Rice is the third-largest crop in terms of area in Pakistan after wheat and cotton, and in 2003–4 was grown on 2.46 million hectares. It is one of the key non-traditional export commodities of Pakistan. Basmati and irri are the two main types of rice cultivated, consumed in and exported from Pakistan. Basmati is a traditional, long-grain (indica), aromatic variety especially suited to the Kalar tract of Punjab province. Although its grain yield is lower than the coarse-grained, short-statured irri rice, the net income per unit area to the growers is about equal from both types, for the market price of basmati is two to three times higher than the irri varieties. Pakistan enjoys a natural comparative advantage in basmati rice production, which has an assured market in several foreign countries where aromatic, long-grain rice is preferred.

Pakistan's annual rice exports average 1.5–2 million tonnes. During 2003–4, they were valued at US$627 million, registering a growth of 12.8% over the preceding year. Pakistani basmati has a market niche because of its characteristic aroma and cooking qualities. Super basmati, which is an extra-long-grain aromatic rice evolved from a cross between basmati 370 and basmati 320, with almost double the yield potential of basmati 370, remains the key export commodity.