Comparative Advantage and Policy Analysis of Rice Production in Swat District Khyber Pakhtunkhwa, Pakistan

The present study is an attempt to inquire the competitiveness and comparative advantage of the rice crop production in swat district based on the data of the harvesting year 2013-14. More importantly to assess whether the current set of policies are favoring or is against the rice Crop production activity. The study also tries to analyses whether Pakistan qualifies for export promotion or not. The techniques of policy analysis matrix PAM has been used to arrive at the results that the rice crop production is nationally profitable for export promotion. The indicators of comparativeness: DRC (0.83) and SBC (1.11), depicts the same results. The greater than unity values of NPC (1.01) and EPC (1.05) indicates that rice production is encouraged for Export promotion, showing the compliance of the current policies with competitiveness. Producer subsidy equivalent ratio and subsidy ratio to producer shows the transfer from consumer to growers of the crop. With positive values of private and social profitability competitiveness and comparative advantage is confirmed for growers of the commodity. The leading factor in cost column was the fertilizer and the suggestion from the study to government was to minimize the costs of mentioned item which will improve the profitability of the crop.