Pakistan Rice Exports To Cross $750 Million Mark

Rice export from Pakistan is expected to cross $750 million level, the highest ever mark, during the current fiscal on the back of rising inquires from the Gulf countries, a newly explored market.

Increase in prices of several qualities in international market has also contributed to the rising exports. Varieties of Basmati and Irri-6 would shares over 70 percent in total exports from the country.

The trend of inquires from international market has lifted exporters hopes who estimate that the exports of Irri-6 alone made an impressive growth by increasing their share by 20 to 25 % as compared to 10-15 % last year in the total exports.

Varieties of Basmati and Irri-6 would shares over 70 percent in total exports from the country.

“Another positive factor is the price trend international market, which remained on rise,” said Rahim Janoo an exporter and former chairman Rice Exporters Association of Pakistan.

“Recently we have witnessed rise in price of two varieties of Basmati, in which one has gone up by 31.50 cent per kilogram and the second one increased by 26 cents.” He said minor increase in prices would return more profit by the end of current fiscal, as the orders of the Basmati varieties are expected to cross over one million tonnes by June 2005.

The country last year exported $653 million rice mostly to Europe, the Gulf States and Far East. Exporters said during the current season they were managed to book orders of other than Basmati variety in a big number.

They said the Irri-6 and D-98 rice varieties were still attracting good number of buyers at higher prices and the two types were estimated to add $240 million and $120 million respectively in total rice exports. “This year we received good response from African states,” said Syed Najaf Hussain Shah, chairman REAP. “African states are top buyers of Irri-6 as Kenya alone is importing 0.5 million tonnes of the Pakistani variety while Philippines and Bangladesh have also shown interest this year.”

He said major Basmati rice shared total almost 50 percent in $653 million exports last year, which it maintained during current season but higher exports of other varieties triggered the overall export figures. Pakistan this year produced much better crop than previous years as its total rice production stands at 5 million tonnes against 4 million tonnes of last year.

Rising trend in export has proved beneficial to growers and millers to some extent, who say the good crop varieties also met demand of international buyers and so far they had received no complaints from any part of the world.

“This year we got the best quality,” said Qamar uz Zaman Shah, president Sindh Chamber of Agriculture. “The southern parts of Sindh still had the best Irri-6 production, which topped in international market as far as quality is concerned.” However, exporters believe country could have exported larger quantity of Irri-6 but the lesser prices offered by its competitors have emerged as serious threat and faded the hopes of all time high exports figures.

“We are making deals at $240 per tonnes,” said Mahmood Raza a miller and exporter from Punjab. “But our competitors like Myanmar and India are offering the same variety at $190 to $200 per tonne.”

India Proposes Joint Rice Plan

* Suggests meeting in Lahore or Amritsar

The All Indian Association of Rice Exporters (AIREA) has contacted Rice Exporter Association of Pakistan (REAP) seeking a meeting to develop a common position on tackling the European Union’s new rice regime.

The Indian body aims to define a limit of non-basmati rice content in basmati rice and also discuss the inclusion of newly proposed basmati varieties in the EU’s Code of Practice on Basmati Rice.

“The concerned authorities are willing to complete the code by October 01, 2004 for final draft, as is being desired by the Food Labelling and Standards Division of Food Standards Agency (FSA),” one rice exporter said.

The exporter said an official from the Indian association sent an e-mail to the chairman REAP and said that India has been actively pursuing and challenging third party attempts in various countries to register the basmati name or its deceptive variations as trademarks. “These efforts have been largely successful and have helped in preserving and protecting the exclusivity of the basmati name and product as a geographical indication of India and Pakistan alone.

While these efforts are an indispensable part of the strategy for protection of basmati, there is an imperative need to strengthen and enrich these efforts by securing statutory protection of basmati as a geographical indication in various countries,” the Indian association is quoted as saying.

Under international law enshrined in TRIPS Agreement, protection in the home country is a pre-requisite for protection in other countries. Since India and Pakistan are both signatories to the TRIPS Agreement, the respective organizations would need to request our respective governments to take efforts for joint protection of basmati including home protection, the Indian official said.

He said India has already enacted a Geographical Indications law, which has been in place since September 15, 2003 and it is now possible to register names like basmati before the Indian Geographical Indications Registry. As a common heritage of India and Pakistan, the basmati name would require the joint efforts of both governments in securing statutory protection, he said. He suggested a meeting within two days time in Amritsar or Lahore.

The Indian team suggested to have three representatives from AIREA and REAP, one representative form India and Pakistan, a legal expert each from India and Pakistan who is handling the case.

The chairman REAP communicated this message from India to all REAP’s executive committee (EC) members on September 15, to get approval for AIREA’s desired meeting.

EC Proposes New Steps For Rice Regime

The European Commission (EC) has proposed new measures for Pakistani rice regime following the exclusion of super basmati from abatement scheme.

Well-placed sources said Wednesday that these measures were discussed at length during a meeting held here on Wednesday. During the meeting, the stakeholders submitted their proposals on the measures, which would be discussed in the next round of meeting, added the source.

According to the proposed measure, the EC's specific bound rate on super basmati, kernal basmati and basmati 370 will be zero subject to a community control system based on DNA analysis and protection of basmati rice as a geographical indication.

Under the transitional arrangement, the source said that from September 1, 2004 till the entry into force of DNA analysis system, the EC's applied rate of duty on these varieties of basmati shall be zero.

According to the measures, however, if market disturbance occurred, the EC would consult with Pakistan in this regard. If no agreement was reached on the issue, the EC reserve the right to revert to the bound rate of duty of 65 euro per ton for husked brown rice.

Pakistan 2003-04 Rice Export Breaks All Records

Country's rice export had surged by 13 percent to $627.214 million during 2003-04, breaking all previous records, exporters said here on Friday.

They said that rice export had also surpassed the export target of $600 million, set by the government for 2003-04.

According to a provisional trade data released by Federal Bureau of Statistics, the major contributor to this rise was the export of Basmati rice, which totalled at $419.955 million showing a climb of 16.39 percent over last year.

A leading exporter said that increase in -the value of coarse rice and Basmati had also supplemented the increase in rice export this year.

Although the volumes declined by 1.43 percent compared to last year, the value surged significantly, he added.

Former Chairman rice Exporters Association, Rahim Janoo said that this was an all time record in the history of rice export. Last year, Pakistan had exported rice worth $555 million, he added.

He said that value of IRRI-6, IRRI-9 and Basmati rice had increased by 20 to 25 percent while coarse rice by 15 to 17 percent. He pointed out that IRRI-6 had secured an average price of $260 per ton, IRRI-9 $350 a ton, Basmati PK-385 $490 per ton and super Basmati $570 a ton.

The value of coarse rice was $207.259 million during 2003-04 against $194.647 million in 2002-03. Janoo hoped that rice crop was good this year and rice export will surpass $700 million during 2004-2005.

He noted that Pakistan would also get its due share in par boiled rice export this year as par boiled plants were being imported from India. One of those plants had arrived at Karachi port and would be ready for production before November when season take off.

He further hoped that the rice export target of $1.0 billion for 2007 was then in easy reach due to friendly policies of the government.

Pakistan's Domestic Rice Prices Rise

Pakistan's domestic rice prices rose sharply during the past week on the back of export demand and traders said they would remain high in the weeks ahead as stocks also grew weaker.

"The domestic prices are rising because there is hardly any stock left in the market," said Haji Abdul Majeed, a leading rice exporter in Karachi.

"The prices will remain on the higher side till the arrival of the new crop, which will not happen until September," he said.

Traders said stocks of only 150,000 tonnes were now available in the market which would put upward pressure on the prices.

"Our season is almost over...Kenyan buyers are interested but we cannot meet their demand because of thin supplies," another trader said.

Pakistan's rice output for the current year is expected to be around 4.2 million tonnes. Its annual domestic consumption is more than 2.0 million tonnes.

The government said it hopes to export 1.9 million tonnes in the fiscal year to June 30, against the previous year's 1.72 million.

Iraq, Sri Lanka, Bangladesh and several East African countries are the main importers of Pakistani rice.

Dealers said Sri Lanka was also expected to come up with a 60,000 tonne IRRI-6 import tender later this week but it was unlikely that Pakistan, a traditional supplier for Colombo, would participate.

"It's a small quantity but still we do not have much stocks to participate," the second dealer said.