Determinants of Rice Export from Pakistan
Rice is the world’s third largest crop, behind maize and wheat. Pakistan stands at number twelve in rice producing countries and number five in rice exporting countries. Although there exists a lot of potential for rice exports from Pakistan but many factors hamper its expansion. The objective of present study was to conduct export margin analysis and quantify the impact of major factors influencing rice export from Pakistan to United Kingdom for two varieties of rice super basmati and PK-386 (coarse rice). Primary data were collected through a survey of 40 rice exporters selected purposively from the list obtained from Rice Exporters Association of Pakistan. The information collected from these exporters was thus analyzed using descriptive statistics and double log form of regression analysis. According to results, net export margin of super basmati was Rs. 25688.72/ton and percent export margin was 36.12 percent whereas in case of PK-386, net export margin was Rs. 18182.03/ton and percent margin was 40.19 percent. The estimated regression model for super basmati showed that education, sale price of super basmati and total marketing cost were significant while age, purchase price and freight charges were non-significant variables. Coefficient of determination was 0.77 and also F value was significant. The results for PK-386 showed that education, total marketing cost and freight charges were significant variables, whereas age, purchase price of and sale price were non-significant variables. Coefficient of determination for this model was 0.74. The findings suggested that proper management should be adopted in rice export policy by extending domestic production base, targeting high priced markets and awareness about importance of these variables for boosting rice exports from Pakistan.
KeywordsRice Basmati Export Regression
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