KARACHI: Rice Export Association of Pakistan (REAP) has expressed concern over huge decline in Basmati and non-Basmati rice export during last two years and urged the government to take appropriate measures to prevent further loss of foreign exchange in this regard.
According to REAP Chairman Mahmood Moulvi, Pakistan has suffered 44 percent decline in rice exports. He said that the country exported 28,615 m/tons Basmati rice in September 2016 whereas in September 2015 the export was 51,733 m/tons. He said that exports of non-Basmati in September 2016 stood at 152,735 m/tons, whereas 202,725 m/tons exported in the last corresponding year, showing a decrease of 24.65 percent.
Mahmood pointed that decline of non-Basmati exports is a real matter of concern as China has reduced its import due to high price issue. He blamed high input costs, overvalued currency and excessive taxes for this. He said Cambodia and Myanmar are emerging as emerging as main Chinese supplier. He also said that Vietnam and Thailand might not be able to compete with Pakistan, adding that another major threat for Pakistan’s non-Basmati sector would be India this year.
Mahmood said that Basmati rice export has been facing severe competition from India. He regretted that lack of research and non-availability of new seeds has caused low yields, adding that the high input costs have made Pakistani Basmati rice totally uncompetitive against Indian Basmati. He said that Pakistan also lost the important and lucrative Basmati market for Iran. To date, banks are not willing to accept documents for shipment to Iran, he said.
He urged State Bank of Pakistan to intervene in the matter and issue directives to commercial banks to accept documents allowing Pakistan exporters to recapture this lucrative and lost market.
