Analysis Exporters Attitudes Towards Value Addition Rice Products Marketing Essay

The intent of this survey is to analyse exporter attitudes towards value add-on and in their sentiments what are the underlying jobs that the exporters are confronting these yearss. Besides look out ways to heighten value of rice, both in its processing and if possible value added merchandises being manufactured out of them. The purpose is to analyse the loss ( unfulfilled ) which the rice exporters are incurring through non exporting rice based merchandises apart from natural rice and to propose ways and agencies for them to export and venture in this new sphere.

Introduction to Research Topic and Methodology

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Background of Rice

Rice belongs to the household “ Gramineae ” it is locally known as ‘Chanwar or Chanwal ‘ . There are many assortments of rice. Paddy cultivation is stated before the morning of civilisation from the grounds. It seems that rice was foremost cultivated as staple nutrient harvest of Asia. It has been cultivated in China, some 5,000 old ages ago. Then it was introduced into India before the clip of Greeks.

Now rice cultivation has been carried into all parts with necessary heat and abundant wet favourable to its growing, chiefly sub- tropical instead than hot or cold. Rice is closely involved in the civilization every bit good as the nutrient ways and economic system of many societies. Indica type rice provenders more than two billion people, preponderantly in developing states It has been estimated that half of the universe ‘s population subsists entirely or partly on rice. After wheat, rice is the 2nd most of import harvest of the universe and more than 90 per centum is presently grown in Asia, because in Asia it is the chief point of diet. It has been estimated that rice production needs to be increased by at least 60 per centum over the coming old ages to run into the demands of the population growing.

In Pakistan there is a demand to alter the policies sing rice production to ingestion. It is high clip to replace the old traditional rice farming techniques with those modern engineerings, which are adopted by the other rice bring forthing states in the universe like Japan, USA, Egypt, India and Thailand.

Purpose of the Undertaking

Rice forms an of import avenue for Pakistan to diversify its exports particularly after the cut pharynx competition in fabrics. This twelvemonth was the first clip of all time that Pakistan crossed the threshold of billion dollars worth of rice exports but when seen in the context of other rice bring forthing states this figure is dwarfed by the fact that our exports of rice is merely in its natural signifier whereas our rivals like India, Vietnam, Thailand are involved to a great grade in value added rice like exporting rice bites, rice noodles, rice oil, papadums etc. The Pakistani exporters have still non ventured in this sphere and thereby there is enormous chance for growing and increasing our exports.

The intent of this survey is to analyse exporter attitudes towards value add-on and in their sentiments what are the underlying jobs that the exporters are confronting these yearss. Besides look out ways to heighten value of rice, both in its processing and if possible value added merchandises being manufactured out of them. The purpose is to analyse the loss ( unfulfilled ) which the rice exporters are incurring through non exporting rice based merchandises apart from natural rice and to propose ways and agencies for them to export and venture in this new sphere.

Objective ( s )

To find the possible willingness of Rice manufacturers in Pakistan to get down bring forthing value added Rice Products – Rice dainties such as Rice Cakes, Rice cereal and Papadum – versus the current set-up of no value add-on and simple processing of rice signifier chaffs and exporting it as it is.

Limitation ( s )

The chief issues refering local rice exporters are the non-tariff barriers being imposed on them by importing states. There is turning bitterness that the authorities has failed to play its function in dialogues with assorted trade organic structures. There is besides bitterness that authorities ‘s policies have non focused on the nucleus issues confronting rice exporters. Plus it was besides explored that agricultural development needs to take topographic point if value is to be added along the supply concatenation.

At present rice production in Pakistan is confronting assorted challenges such as H2O shortages/drought, worsening dirt birthrate ; dirt salt ; increasing losingss caused by insect plagues ; diseases and weeds ; harvest and post-harvest losingss ; high cost of production ; human resource crises in rice production ; WTO government ; increasing competition in the international market and environmental pollution.

Chapter 2

Literature Review

Plantation, Processing, Classification and Production of Rice

Chapter 2

LITERATURE REVIEW

Rice Plantation

Rice works requires huge measures of rainfall in the initial yearss of its plantation, followed by a long and uninterrupted season of hot and dry conditions. It is harvested by manus with delicate attention, aged to flawlessness and so processed.

Rice Processing

The procedure begins every bit shortly as rice arrives from the Fieldss. Foremost, whole or paddy rice is dehusked by a gum elastic axial rotation sheller to bring forth brown rice. The outer tough protective coating is removed holding no consequence on the nutritionary composing of the grain within the chaff.

The attendant brown rice can be farther milled to bring forth white rice. Milling of brown rice involves remotion of the outer bran beds of the grain which are darker in colour and are rich in foods such as B vitamins. Ahmed. M ( 2005 )

Processing of Rice is shown clearly in the undermentioned chart:

Figure 1: Processing of Rice

Nutritional Benefits and Significance

Rice has been found to be really easy to digest. It is low in fat, low in cholesterin, high in amylum and has a high nutritionary content. It is besides an first-class beginning of energy. It comprises 77.5 % saccharide. Carbohydrate is one of the human organic structure ‘s two chief beginnings of energy, the 2nd being fat.

Rice besides contains a scope of of import foods, including B and E vitamins, protein and minerals -especially potassium which helps the organic structure cut down toxins.

Furthermore, rice is basically of import to assorted civilizations that it is frequently straight associated with prosperity and much folklore and legend surrounds the grain. Children are besides served with rice as their first solid nutrient. And, harmonizing to Louisiana folklore, the trial of a true Cajun is whether he can cipher the precise measure of gravy needed to attach to a harvest of rice turning in a field.

Therefore, from its early beginnings to the present twenty-four hours, rice continues to play an built-in function in prolonging both the universe ‘s appetencies and cultural traditions. Ahmed. M ( 2005 )

Categorization of Rice ( Size and Shape )

Long-grain:

The slender grains are four to five times longer than they are broad. If decently cooked, they will be downy and dry, with separate grains.

Medium-grain:

Medium-grain is approximately twice every bit long as it is broad and cooks up wet and more stamp than long-grain. It is popular is some Asiatic and Latin American civilizations, and it is the type of rice most normally processed to do cold cereals.

Short-grain:

Short-grain may be about egg-shaped or unit of ammunition in form. Of these three types of rice, it has the highest per centum of amylopectin, the amylum that makes rice gluey, or clop together, when cooked. Easy to eat with chopsticks, it is ideal for dishes like sushi.

Assortments of Rice

Arborio:

Arborio is starchy white rice, with an about unit of ammunition grain, grown chiefly in the Po vale of Italy. Traditionally used for cooking the Italian dish Italian rice, it besides works good for paella and rice pudding. Arborio absorbs up to five times its weight in liquid as it cooks, which consequences in grains of creamy consistence.

Aromatic Rice:

These are chiefly long-grain assortments that have a toasty, nutlike aroma and a spirit reminiscent of Zea mays everta or roasted nuts. Most of these can be found in food market shops, but a few may be available merely at gourmet stores.

Basmati:

Basmati, the most celebrated aromatic rice, is grown in India and Pakistan. It has a nutty aroma while cooking and a delicate, about buttery spirit. Unlike other types of rice, the grains elongate much more than they plump as they cook. Lower in amylum than other long-grain types, basmati turns out flakey and separate. Although it is most normally used in Indian cookery, basmati can besides be substituted for regular rice in any favourite formula. It is reasonably expensive compared to domestic rice.

Pakistani Basmati Rice

From the foothills of Himalayas and fed by the enriched mineral snow-fed H2O, the slender long grain of Basmati Rice is good known for acquiring doubled its size after cooking. It ‘s alien olfactory property, delightful nutlike spirit and best alimentary value makes it the ultimate pick of Rice lovers ‘ across all continents. The name basmati originated from a Sanskrit word “ BAS ” significance odor. Akhtar. P ( 2005 )

Gluey Rice ( sweet rice ) :

Popular in Japan and other Asiatic states, this type of short-grain rice is non related to other short-grain rices. Unlike regular tabular array rice, this starchy grain is really gluey and resilient, and turns translucent when cooked. Its cohesive quality makes it suited for rice dumplings and bars, such as the Nipponese mochi, which is molded into form.

Jasmine:

Jasmine is traditional long-grain white rice grown in Thailand. It has a soft texture and is similar in spirit to basmati rice. Jasmine rice is besides grown in United States, and is available in both white and brown signifiers.

Texmati:

Certain types of rice-some sold merely under a trade name have been developed in US to come close the spirit and texture of basmati rice. Texmati is one of these ; it was developed to defy the hot Texas clime ( there is besides a brown rice version )

Wehani:

An American-grown aromatic rice. Wehani has unusual rust-colored bran that makes it turns mahogany when cooked. Akhtar. P ( 2005 )

Wild pecan ( popcorn rice ) :

Another basmati loanblend, this aromatic rice is tan in colour ( because non all of the bran has been removed, with a pecan like spirit and steadfast texture ) .

Other merchandises made from rice which I would be concentrating on are:

Pappadums

Rice bite

Precooked rice

Rice Oil

Cereal

Shares in Area and Production

Provincial Footing

The one-year production of rice from 2006-07 to 2008-9 has an norm of 5.984 million tones and country of 2679 1000 hectare. The provincial portions in country and production of rice by assortment are as under

Shares in Area and Production of Rice on Provincial footing

Average of 2006-07 to 2008-09

Assortment

Pakistan

Punjab

Sindh

NWFP

Balochistan

Area

000 Hectare

Percentage

Percentage

Entire

2678.93

100

67.27

23.96

2.30

6.47

Basmati

1458.57

54.45

100

IRRI

880.55

32.87

18.76

61.54

19.69

Others

339.80

12.68

5245

2941

18.14

Production

000 dozenss

Entire

5983.93

100

55.50

34.28

2.12

8.10

Basmati

2502.47

41.82

100

IRRI

2692.67

45.00

15.50

66.51

17.99

Others

788.79

13.18

50.85

33.03

16.12

Beginning: Rice Export Association of Pakistan ( REAP )

Above tabular array shows that the mean entire rice production in Pakistan was 5984 1000 dozenss from 2006-07 to 2008-09 on a entire country of 2679 1000 hectare. Basmati rice production was 2502 1000 dozenss on country of 1459 1000 hectare, IRRI was

2693 thousand dozenss on an country of 880 1000 hectare, and other Assortments of rice was 789 thousand dozenss on an country of 340 1000

hectare. The provincial portions of production of rice in per centum i.e. Punjab 56 % , Sindh 34 % , NWFP 2 % , and Balochistan 8 % .

Analysis: Rice Export of Pakistan for the last five old ages

The below mentioned table nowadayss an analysis of exports of rice from Pakistan for last five fiscal old ages in term of measure, value and mean unit monetary value.

July – June

2009-

10

2008-

09

% Change

2008-

09

2007-

08

% Change

2007-

08

2006-

07

% Change

2006-

07

2005-

06

% Change

Rice

Qty. M.T

4,014,487

2,729,360

47.09

2,729,360

2,809,148

( 3 )

2,809,148

3,129,142

( 10 )

3,129,142

3,688,742

( 15 )

Value

2,176,395

1,983,231

9.74

1,983,231

1,836,063

8

1,836,063

1,125,819

63

1,125,819

1,157,814

( 3 )

A.U.P. per M.T

542.14

726.63

( 25 )

726.63

653.60

11

653.60

359.79

82

359.79

313.88

15

Rice Basmati

Qty. M.T

979,267

974,274

0.51

974,274

1,138,093

( 14 )

1,138,093

907,906

25

907,906

839,002

8

Value

855,976

1,070,338

( 20 )

1,070,338

1,068,862

0

1,068,862

556,320

92

556,320

479,616

16

A.U.P. per M.T

874.10

1,098.60

( 20 )

1,098.60

939.17

17

939.17

612.75

53

612.75

571.65

7

Rice Other

Assortments

Qty. M.T

3,035,220

1,755,086

72.94

1,755,086

1,671,055

5

1,671,055

2,221,236

( 25 )

2,221,236

2,849,740

( 22 )

Value

1,320,419

912,892

44.64

912,892

767,200

19

767,200

569,499

35

569,499

678,198

( 16 )

A.U.P. per M.T

435.03

520.14

( 16 )

520.14

459.11

13

459.11

256.39

79

256.39

237.99

8

Beginning: Statistic Division, TDAP.

Analysis of World Rice Trade

Exporting Countries- Analysis

State

2006

2007

2008

2009

2010

2011

% Change

Siam

7,376

9,557

10,011

8,570

9,500

10,000

5.26

Vietnam

4,705

4,522

4,649

5,950

5,750

5,800

0.87

Pakistan

3,579

2,696

3,000

3,000

3,300

3,600

9.09

United States

3,260

3,003

3,219

2,992

3,300

3,350

1.52

India

4,537

6,301

3,383

2,150

2,200

2,500

13.64

Cambodia

350

450

500

800

850

900

5.88

China

1,216

1,340

969

783

850

900

5.88

Uruguay

812

734

742

926

750

800

6.67

Myanmar

47

31

541

1,052

600

700

16.67

Argentina

487

436

408

594

550

600

9.09

Brazil

291

201

511

591

300

500

66.67

United arab republic

958

1,209

750

575

520

400

-23.08

Guyana

250

210

210

250

250

250

0.00

Japan

200

200

200

200

200

200

0.00

Ecuador

161

101

5

37

150

150

0.00

EU-27

144

139

157

150

140

140

0.00

Others

725

721

434

527

546

560

2.56

World Sum

29,098

31,851

29,689

29,147

29,756

31,350

5.36

Beginning: World Market & A ; Trade, USDA

Importing Countries – Analysis

State

2006

2007

2008

2009

2010

2011

% Change

Philippines

1,791

1,900

2,500

2,000

2,600

2,500

-3.85

Nigeria

1,600

1,550

1,800

2,000

1,800

1,900

5.56

Persia

1,500

1,500

1,550

1,400

1,400

1,600

14.29

EU-27

1,221

1,342

1,520

1,383

1,350

1,350

0.00

Saudi Arabia

958

961

1,166

1,049

1,100

1,300

18.18

Irak

1,306

613

975

1,089

1,100

1,150

4.55

Malaya

886

799

1,039

1,070

1,020

1,020

0.00

Cote d’Ivoire

750

980

800

800

860

900

4.65

South Africa

800

960

650

745

800

850

6.25

Japan

681

642

546

750

700

700

0.00

Senegal

600

700

860

715

700

700

0.00

United States

633

695

651

682

735

700

-4.76

Mexico

585

607

578

610

600

650

8.33

Brazil

691

684

417

650

850

600

-29.41

Cuba

594

574

558

457

550

550

0.00

Vietnam

350

450

300

500

500

500

0.00

Hong Kong

309

348

399

395

400

410

2.50

Bangladesh

531

1,570

1,658

150

250

400

60.00

Guinea

200

240

175

150

330

375

13.64

Mocambique

330

410

300

350

350

375

7.14

Syria

214

235

230

300

350

350

0.00

Siam

2

3

8

300

300

350

16.67

United Arab Emirates

250

285

300

300

300

350

16.67

Yemen

250

338

315

325

325

335

3.08

Canada

333

341

365

322

330

330

0.00

China

654

472

295

337

300

330

10.00

Others

11,079

12,652

9,734

10,318

9,856

10,775

9.32

World Sum

29,098

31,851

29,689

29,147

29,756

31,350

5.36

Beginning: World Market & A ; Trade, USDA

WORLD RICE CONSUMPTION AND MILLED PRODUCTION

MILLLED PRODUCTION

State

2006

2007

2008

2009

2010

2011

% Change

China

126,414

127,200

130,224

134,330

137,000

137,500

0.36

India

91,790

93,350

96,690

99,180

87,500

99,000

13.14

Dutch east indies

34,959

35,300

37,000

38,300

38,800

40,000

3.09

Bangladesh

28,758

29,000

28,800

31,000

31,600

32,300

2.22

Vietnam

22,772

22,922

24,375

24,393

24,312

24,750

1.80

Siam

18,200

18,250

19,800

19,850

20,300

20,600

1.48

Myanmar

10,440

10,600

10,730

10,150

10,597

11,000

3.80

Philippines

9,821

9,775

10,479

10,753

10,100

10,800

6.93

Brazil

7,874

7,695

8,199

8,569

7,820

8,400

7.42

Japan

8,257

7,786

7,930

8,029

7,711

7,850

1.80

United States

6,912

6,088

6,149

6,400

6,917

7,621

10.18

Pakistan

5,547

5,450

5,700

6,700

6,500

6,500

0.00

Cambodia

3,771

3,946

4,238

4,520

4,780

4,950

3.56

South Korea

4,768

4,680

4,408

4,843

4,916

4,600

-6.43

United arab republic

4,135

4,383

4,385

4,402

4,300

4,200

-2.33

Nigeria

2,700

2,900

3,000

3,200

3,400

3,600

5.88

Others

31,389

30,985

31,473

33,264

35,622

36,069

1.25

World Sum

418,507

420,310

433,580

447,883

442,175

459740

3.97

WORLD RICE CONSUMPTION

State

2006

2007

2008

2009

2010

2011

% Change

China

128,000

127,200

127,450

133,000

134,500

135,500

0.74

India

85,088

86,700

90,466

91,080

89,300

93,500

4.70

Dutch east indies

35,739

35,900

36,350

37,090

38,100

39,500

3.67

Bangladesh

29,000

29,764

30,747

31,000

32,000

33,00

3.13

Vietnam

18,392

18,775

19,400

19,000

19,150

19,500

1.83

Philippines

10,722

12,000

13,499

13,650

13,785

13,00

0.11

Myanmar

10,400

10,670

10,249

9,648

10,000

10,100

1.00

Siam

9,544

9,780

9,600

9,500

9,600

9,800

2.08

Brazil

8,460

7,925

8,254

8,530

8,600

8,650

0.58

Japan

8,250

8,250

8,177

8,326

8,200

8,125

-0.91

Nigeria

4,300

4,400

4,500

5,150

5,300

5,500

3.77

South Korea

4,766

4,887

4,670

4,788

4,750

4,740

-0.21

United States

3,682

3,959

3,919

3,957

4,285

4,329

1.03

Cambodia

3,571

3,646

3,788

3,770

3,960

4,070

2.78

United arab republic

3,320

3,276

3,340

4,000

4,000

4,000

0.00

Persia

3,274

3,294

3,297

3,400

3,500

3,600

2.86

Others

49,135

50,793

50,279

51,772

53,532

55,724

4.09

World Sum

415,643

421,219

427,985

437,661

442,562

453,438

2.46

Beginning: World Market & A ; Trade, USDA

Analysis OF INTERNATIONAL RICE Trade

International rice trade has estimated that the volume of planetary rice market is about one-quarter of wheat and a small over tierce of that of corn. It is limited in the sense that its volume in the international market is relatively smaller than other major trade goods as is the measure, which is limited in relation to its entire production.

The major ground of the limited international rice market is that most rice bring forthing states are major rice consumers besides. In malice of the limited planetary rice market, there has been a significant addition in the entire sum of its trade, with the transition of clip. It has grown from 7 million tones in 1961 to 19 million tones in the 1990s and to more than 28 million tones in the twelvemonth 2003.

The planetary rice trade is diverse and involves assorted types of rice from really short to extra long grain, really low amylase ( gluey ) content to high amylase content, whole grain to interrupt rice, and aromatic to non-aromatic and so on. The amylase content ( AC ) determines whether the grain is difficult or soft, gluey ( gluey ) or non-sticky ( non-glutinous ) . With the addition in AC, the hardness of rice grains additions and vice- versa. The construct of grain quality differs widely in different states and even in different parts of the same state. By and large, long and medium grain rice with intermediate AC ( indica rices ) predominates in American and Southeast Asiatic markets. [ Salim 2006 ]

Low income states like Bangladesh, Philippines, Indonesia, and Thailand and so on prefer long grain rice with high AC. On the other manus, high income consumers by and large prefer low AC rice. The short grain and bold rice ( Japonica rice ) is preferred in Japan, Korea, north-eastern and cardinal China. This type of rice becomes gluey ( waxy ) after cooking. Its trade nevertheless, is limited to merely 1 per cent in the international market. In general people from Pakistan, India and assorted other states do non like gluey rice.

African states have increased the demand for low quality broken rice while Asiatic states buy such rice for the brewing industry or for noodle fabrication. The proportion of each class in the international market varies widely from twelvemonth to twelvemonth. The portion of high quality rice is really high ( 75-77 per cent ) than low quality rice ( 23-25 per cent ) . The proportion of aromatic rice normally varies from 10-15 per cent in the international market. Its portion was 9 per cent during 1992-94 and increased to 12 per cent during 2001-2003. Aromatic rice is by and large considered of high quality and their import degrees are increasing. In the late eightiess, the trade of aromatic rice was merely 0.6 million tones, which increased to 1.7 million tones in the early 1990s. International rice trade is rather unstable and undergoes a batch of temporal fluctuations. An analysis from 1981 to 2003 period reveals that rice trade increased from 10.6 million tones to 28.3 million tones.

All over the universe, the tendency of rice ingestion and demand is altering. Assorted rice-importing states have either achieved autonomy or have become rice exporters. States like China and Indonesia in some old ages become exporters and in other old ages importers. Such alterations result into major fluctuations in the international rice trade. With the betterment in the economic conditions or increase in the handiness of fiscal resources, there is a displacement in the demand from low quality to high quality rice. As rice monetary values diminution, consumers do non buy more measure of rice but displacement to better quality rice. In Japan there is a displacement from standard quality rice to high quality rice. A similar tendency is seeable in assorted other fast turning states including South Korea, Thailand and Malaysia. [ UN 2005 ]

Consumers of Thai urban countries are besides switching. It has been estimated that as the income of urban families in Thailand additions by 1 per cent, outgo on high quality rice additions by 0.02 per cent. It is apparent that the monetary value of rice with the same intrinsic features produced and processed in different states may hold a batch of differences depending on the production engineering and post-harvest operations ( drying, convulsing, milling, scaling, packing and storage ) . In general, in developed states like USA and Australia, rice growth, processing, transfering and packing are extremely mechanized and avoid every type of taint. But in most Asiatic states, such processs are non yet decently mechanized. Due to these fluctuations a batch of differences in monetary value are witnessed in the market.

Monetary value derived functions can besides be on the existent or sensed differences in quality, which can be reinforced by trade names, transit derived functions and commercial hazards. Based on good production engineering and better post-harvest operations, the monetary value of US No.2 long grain rice was relatively higher ( US $ 24 per tone ) than Thai 100 per cent class B during 1994-95. This difference in monetary value increased to US $ 149 per tone in 1997-98. The qualities of both of them are comparable. Likewise, the monetary value of Vietnamese 5 per cent broken rice, good quality rice was about US $ 56 per tone, which is lower than Thai 100 per cent class B. Therefore, there is a batch of range to increase our exports of rice in pecuniary footings by doing betterments in the production engineering including better drying, transit, milling, rating and packing etc.

Different states are in the procedure of doing policy alterations for doing betterments in rice production, import and export. For illustration Nigeria lifted its rice import prohibition in 1994. Senegal eliminated the demand for anterior mandate to import rice in 1992. Bangladesh liberalized rice trade in 1994. Japan and Korea opened their markets to rice under a minimal entree quota in 1995.

India excessively lifted the prohibition on export of non-Basmati rice in 1994. In 2001, it started professing subsidies on non-Basmati rice exports. Rice manufacturers in India continued to acquire benefits from high authorities subsidies on inputs, power and irrigation and got protection through support monetary value. Different states are doing schemes to heighten rice production and achieve sustainability. Bangladesh is doing attempts to accomplish autonomy in rice production. Major accent is on the publicity of rain-fed rice production by development of drouth tolerant rice assortments and promoting rice husbandmans to follow new engineerings through the proviso of high quality seed, irrigation, preparation and so on. To heighten rice productiveness, Cambodia has taken a figure of enterprises during the recent old ages including riddance of 5 per cent agricultural revenue enhancement within five old ages and managed direct payments to grain manufacturers and supplying seed to husbandmans on subsidised rates.

The authorities of Iran is supplying support to rice manufacturers by supplying high support monetary values and advancing airing of improved production engineerings to accomplish autonomy in rice production. The Republic of Korea is doing attempts to heighten rice productiveness by promoting husbandmans to turn high quality rice in specified countries. The Philippines provided 50 per cent subsidy on certified seeds and fertilisers through a strategy. Thailand is implementing a national rice scheme during 2002-2006 and has earmarked Baht 90 billion ( US $ 2 billion ) for the building of silos, research and development publicity and market monetary value stabilisation. Rice demand in Asia will increase from 309 million tones in 1993 to about 410.5 million tones in 2020. In Southeast Asia, addition in demand will be about 38 per cent in the same period. In eastern Asia addition will be by 15 per cent merely. The addition in the high quality indica rice trade will be more than other types of rice. With economic development, in-between category consumers and urban occupants are likely to switch to high quality indica rice. Furthermore, the richer states of sub-Saharan Africa are expected to demo a strong demand for indica rice whereas additions in the japonica market will be merely 4 per cent during 1993-2020. [ DAWN 2006 ]

Given the high demand in the yearss to come, improved production engineering and appropriate post-harvest operations like threshing, drying, milling, scaling, wadding, transit and storage demand to be encouraged. There is besides a demand to better alimentary value of rice grain. Iron and zinc fortified and vitamin A-enriched rice grains will turn out really utile to 1000000s of hapless particularly adult females and kids in Asia and Africa. Maintaining rice exports at the same degree seems hard since it involves batch of consciousness and selling accomplishments. But the increasing value of rice trade will do the attempt worthwhile. It is imperative to make in-depth short, medium and long term analyses on rice production and selling at the planetary degree and so develop a scheme non merely to keep the present degree of exports but enhance rice export from Pakistan.

Chapter 3

Research Methodology

Research design will concentrate on both qualitative and quantitative side of research

Chapter 3

Type OF STUDY

This survey is a combination of both qualitative and descriptive research designs. On one manus it aims to find attitudes of exporters and rice processors and on the other manus it besides tries to research assorted issues being faced by local exporters in exporting rice. It besides aims to analyse how value can be added to Pakistani rice exports.

The qualitative research will give us insight into the rice scenario in the universe while the descriptive research, which includes a study questionnaire will supply a quantitative facet to our research.

Hypothesis

The Working Hypotheses for the research survey are:

H1: Value-added rice merchandises give better rate of return, as compared to raw rice merchandises.

H2: Government ‘s function in rice value add-on is non supportive for the local rice export industry.

H3: Lack of advanced technological installations is haltering value add-on in rice merchandises.

RESEARCH DESIGN

The research design will concentrate on both qualitative and quantitative side of research. The qualitative exploratory research will be based on in-depth interviews and literature analysis. This will organize the footing of our hypothesis and we will farther carry on a study with rice exporters and processors to find their sentiment towards value add-on

Methods of Data Collection:

Qualitative Datas:

Literature and publication reappraisals

One on one interviews

Quantitative Datas:

aˆ? Survey questionnaire

Datas Analysis

The information analysis is conducted utilizing the followers ;

Analytic penetration for qualitative informations

Excel sheets in Microsoft Excel

Target Population and Sample Size:

Target population:

Rice exporters and processors in Karachi

Sample Size:

20 exporters and processors

Mr. Irfan Ahmed Sheikh

Mr. Ashfaq Ghaffar

Mr. Mohammad Amjad

Mr. Nasir Ilyas Bukhsh

Mr. Jawed Ali Ghori

Mr. Fuad Hamid Garib

Mr. Chela Ram

Mr. Safder Hussain Mehkri

Mr. Abdul Ahad Tareen

Mr. Amin Bakali

Mr. Abdul Aziz Ghaffar

Mr. Arshad Khaliq

Mr. Wajid Paracha

Mr. Aziz Manya

Mr. Younus

Mr. Shamsul Islam

Mr. Shahid

Mr. Tekamal

Mr. Farooq Chaudhry

Mr. Wahid Tawawala

Sampling Technique

We will utilize quota sampling in this study research.

aˆ? 8 exporters of Basmati

Mr. Irfan Ahmed Sheikh

Mr. Farooq Chaudhry

Mr. Arshad Khaliq

Mr. Jawed Ali Ghori

Mr. Shamsul Islam

Mr. Wajid Paracha

Mr. Nasir Ilyas Bukhsh

Mr. Abdul Aziz Ghaffar

aˆ? 8 exporters of IRRI

Mr. Ashfaq Ghaffar

Mr. Fuad Hamid Garib

Mr. Wahid Tawawala

Mr. Aziz Manya

Mr. Chela Ram

Mr. Tekamal

Mr. Safder Hussain Mehkri

Mr. Abdul Ahad Tareen

aˆ? Top 4 processors of rice by value

Mr. Younus

Mr. Amin Bakali

Mr. Shahid

Mr. Mohammad Amjad

Chapter 4

Analysis & A ; Discussion

Rice Markets and Value Added Merchandises

Chapter 4

Analysis AND DISCUSSIONS

The introductory inquiry of the research questionnaire concluded that Pakistani exporter ‘s export largely whole grain, and hardly ventured into any other signifier of rice for export. From the research findings, this so seems to be the instance and merely one exporter/processor organize our sample was exporting broken rice, and all of them exported whole grain rice. The lone constructs of value add-on which were present were based on adding value to whole grain rice, which is limited in its range.

Sing the chances of certain Rice merchandises, are popular around the universe, such as Rice bars, cereal made of rice, even Papadum, the consequence as shown below indicates there are low opportunities of success in the local market due to higher monetary values of value added rice merchandises.

This shows that exporters seem to experience that value add-on should non be followed in Pakistan. However the ground for this seems to be more dependent on the fact that it concerns how our traditional challengers, India, have begun to venture into value add-on, and it hinges on whether or non we should follow them.

The consequences indicate that there are high chances of international growing in value added rice merchandises. Rice Crackers are considered to be the easiest and most effectual export of a rice merchandise. Precooked rice is by and large believed to hold good potency. Aside signifier Rice Crackers nevertheless, Rice Cereals, and other merchandises ( kheer mix and biriani ) are considered easy and holding high potency.

A big figure of respondents feel that value added rice merchandises can bring higher monetary values and more net incomes for them in the international markets. As other states have already ventured into this and are basking the market portion, Pakistani value added merchandises can take a good portion from this market due to there top quality rice exports. For this, Pakistani exporters should work hard on strong stigmatization of there value added rice merchandises abroad.

As per the consequences, it appears that most exporters are cognizant of competition from Indian and other international companies in the value added merchandises of rice.

The consequence shows that Pakistani Industry should follow the same way and give strong competition to the international companies and should establish its value added merchandises of rice internationally.

This inquiry was once more derived that respondents criticized authorities ‘s function in publicity of rice.

Assorted responses targeted the short approachs of the authorities.

aˆ? A comprehensive rice policy should be pursued by the authorities

aˆ? Should forestall smuggling

aˆ? Rice Ministry should be set up

aˆ? Government should educate husbandmans about newer and better techniques for reaping rice

aˆ? Reduce responsibility on harvest home and milling machines.

A larger figure than expected had agreed with the inquiry and answered that deficiency of technological installations in agricultural sector cause the deficiency of value add-on. Respondents were unsated with the research on seed development, and besides thought that the deficiency of agricultural development led to miss of value add-on. Harvesting is besides considered as the major failing. Processing is besides clearly the weak point, and packaging is considered to be the country with the least issues.

Chapter 5

Recommendation & A ; Conclusion

A Summary & A ; Suggestions

Chapter 5

RECOMMENDATION AND CONCLUSION

Decision

The research shows that exporters have good cognition of value add-on and they have programs to venture farther in to it. Besides export of value added merchandises of rice can assist them bring higher monetary values as compared to what they are acquiring from simple rice export. The decision that can be drawn from this research is that value add-on is the best manner for Pakistani exports in the hereafter.

Another key determination is that attempts have to be made in the agribusiness sector and husbandmans are to be made more educated on new and better techniques for reaping rice and new machineries are to be set up in order to better the value in Pakistani rice.

The authorities has to play a really of import function in the rice sector particularly in bettering Pakistan ‘s image abroad. It has to acquire farther trade grants from international bargainers and have a comprehensive rice policy.

Recommendations for Report

After holding conducted a figure of face to face and telephone interviews and from the literature reappraisal I came to the decision that besides rice exporters are confronting enormous adversities in acquiring rice at competitory monetary values in the local market following the sudden rise in its monetary values. The stairss that are to be taken by the authorities include engaging advisers from the developed states so that production of rice could be increased and value can be added to it. The quality of rice should be maintained and intermixing other assortments with basmati should be banned as it consequences losing the name and repute of Pakistani rice.

Possibly the biggest job in the rice trade is in the upstream sector which is when rice is planted to when it is harvested. The procedure here should be made more streamlined through put ining separate thrashers for the rice harvest besides the machines should be used by manus and non mechanized because that is where the losingss due to cutting are reduced. The handiness of H2O and seed research should be looked into at war terms because there have been tonss of assortments over the past 5 old ages which have disappeared and no new assortments have been introduced. On the other manus Indian research in this sphere is really high tech and they come up with a batch of assortments every twelvemonth.

Furthermore there is a existent demand to develop the selling side of rice both local and internationally as the rice that is usually being exported to the Middle Eastern states are ever labeled as Indian rice and that is because of the aggressive selling that India is seting its attempts in to set up such an image.

Rice Export Association of Pakistan ( REAP ) can play of import function by close coaction with scientists, husbandmans and other interest holders to heighten productiveness, better quality and increase rice export from Pakistan. REAP should assist acquiring fiscal support chiefly from public sector to circulate to interest holders for research and development activities.

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