The Economic Coordination Committee of Pakistan’s Cabinet has approved a subsidy package of around $98.3 million to small scale rice farmers with around 10 hectares of rice land.
The ECC certain that basmati rice farmers would be given a subsidy of around Rs.5, 000 per acre (around $123 per hectare).
The ECC also permitted to encompass power subsidy to rice farmers, in which they can benefit electricity at a reasonable rate around $0.1 per unit till June 30,2015.
Pakistan Prime Minister promised to grant subsidies to basmati rice farmers to aid them contest the falling global rice export prices.
Regular Pakistan basmati rice trade prices dropped about 1% to around $1,435 per ton in October 2014 from around $1,450 reason, snowballing supplies from continuing crops and dwindling export demand.
The President of the Union of small and Medium Enterprises said Pakistan is a major exporter of basmati rice next to India. Pakistan exported 145,224 tons of basmati rice in the July September Financial Year 201415, slightly up from about 144,666 tons exported in the same period in Financial Year 201314. Pakistan exported 622,602 tons of rice in Financial Year 201314.