The impact of this cut is expected to be greater on IRRI crop than on the Basmati crop since IRRI generally is grown in areas that rely heavily on canal irrigation, while Basmati is grown in areas with large scale tubewell irrigation. Thus, experts expect the basmati crop generally will be sown on time despite the water shortage, while the IRRI crop, which mainly is grown in Sindh, will be late. Despite low prices and increasingly vocal complaints from rice producers, the government plays a minor role in the rice market. About 60 percent of the crop is destined for local consumption and the remainder exported. The government does not maintain grade standards for rice.
All trade is done by the private sector.
The state-owned Rice Export Corporation was abolished several years ago. 12,040 MT of Basmati rice and 1,679 MT of IRRI rice was shipped to the United States between November 1999-June 2000. All stocks are held by the private sector in small lots. Of that total, basmati rice accounted for 569,823 tons, and other rice types accounted for the remaining 1,346,231 tons. Basmati rice area is down about 7 percent and IRRI rice area is down 20 percent.