An Economic Analysis of Rice Production in Pakistan: A Case Study

Rice is the second-largest crop in Pakistan as it contributes 1.3% share in the GDP of Pakistan.

For the last couple of year’s rice economy is caught up in a very complex situation. The present study was designed to find the yield gap, cost of production, technical efficiency and BCR (Benefit Cost Ratio) in rice production. To achieve the study objectives, data were collected from 150 respondents. These respondents were selected from eight villages of District Sheikhupura by using a purposive random sampling technique. Data were collected by using a well-developed and pre-tested questionnaire by conducting personnel interviews.

Results of descriptive analysis showed that the average farm size of the farmers was 14.85 acres. BCR (Benefit Cost Ratio) of fine and coarse rice varieties were 1.13 and 1.11, respectively. To Support rice production and to minimize the farmer’s losses, the Government should announce the support price of rice. The cost of production can be reduced by imposing strict vigilance and control over the input supplier.