LAHORE – Despite devastating floods last year, rice exporters have exported rice valued at $1.5 billion during the first nine months of the current fiscal year. If the government provides adequate support and a zero rated tax regime; rice exports can easily touch the $5.0 billion benchmark in a few years.
Rice Exporters Association of Pakistan (REAP) acting Chairman Taufeeq Ahmad Khan made these remarks while addressing a news conference at the REAP office on Monday. Khan said that owing to heavy flooding last year and unrest in Middle East, rice exporters were expecting a 50 percent decline in rice exports, but better basmati pricing played a pivotal role this year.
He disclosed that during July-March 2010-11 Pakistan had exporter 2.75 million tonnes of rice of which 0.80 million tonne was basmati and 1.94 million tonne were non-basmati varieties. REAP figures illustrate that Pakistan had exported $699 million worth of basmati rice during the first three quarters of the current financial year, which was 19 percent higher than during the same period last year. While non-basmati rice exports registered a decline of 18.33 percent as the country had exported $851 million worth non-basmati rice during first none month of current financial year. However, REAP acting chairman expressed optimism that Pakistan would achieve the rice export target of two million tonnes. He asked the government to provide badly needed support to the rice industry. “Load-shedding and the high-markup are already hitting the second largest export oriented industry hard and now the government has imposed multiple taxes, which has rendered Pakistani products uncompetitive in the international markets.” Khan pointed out that due to unrest in the Middle East; buyers were reluctant to book orders. Rice exporters were willing to explore new markets, but they require government patronage. He stressed that China could prove to be a lucrative market for Pakistani rice exporters as rice is a staple food. “If Pakistan manages to capture Chinese rice markets, there is no need to look to other countries,” he added.
Rice exports on target, at $1.5b
