Pakistani rice specially the non-basmati has started facing stiff competition in the international market after devaluation of Indian currency causing reduction in price of its rice. The Indian non-basmati rice is now being sold at a lower price by 4 to 5 percent as compared to the products exported by Pakistan, Thailand and others in the international market, sources in the Rice Exporters Association of Pakistan (REAP) told profit on Saturday.
As the devaluation of Indian currency has affected the price of export items like rice in the international markets, the foreign buyers were now more interested to place orders for the cheaper rice from India; they said adding “it’s a competition to not only Pakistan but also Thailand, the biggest exporter of rice”. Thailand’s rice export to African countries has also reportedly declined after the entrance of Indian rice.
The stiff competition will not only affect the export of the rice stock in the country but will also have implications on the country’s paddy, they claimed. The stiff competition for Pakistani rice was started after the ban imposed by India on non-basmati rice export was lifted on September 8 this year. India’s government had banned private companies from shipping non-basmati rice in April 2008 amid a global food crisis,
According to a report, exports from the world’s second-largest producer may total 4 million tons in the year from April 1. Indian shipments will account for 11 percent of global trade this calendar year, overtaking the U.S. and Pakistan to become the third-largest shipper. Though it was estimated that shipments from Pakistan may exceed 4 million tons with the production of 6.5 million tones, an increase of 38 percent during 2011- 2012, the current heavy monsoon rains in Sindh which has destroyed almost 25 percent of the paddy may would affect the exports, sources said.
According to Taufiq Ahmed Khan, Vice Chairman of REAP, recently a foreign buyer who was interested to buy non-basmati rice from Pakistan changed his intention after the price difference emerged with the arrival of Indian rice in the international market.
Though it is not expected to be a major change in the expected exports of rice from Pakistan due to the cheaper Indian rice, Pakistani rice would however face tough competition in the rice market.
According to sources another tough competition that Pakistani products were facing in the international market are the country’s exports of wheat which have almost been halted after the arrival of cheaper Russian wheat in the international markets.
Due to the stiff competition and lower price in the international markets, the export of Pakistani wheat has almost come to a standstill despite the government’s decision to lift the ban imposed for almost three years.
