ISLAMABAD: The Ministry of Commerce (MoC) is very much alive to the issue of surplus rice in bulk quantity in the country.
In May this year, Rice Exporters’ Association of Pakistan announced that Rice exports crossed the $2 billion mark in foreign sales.
However, as per reliable estimates, a huge quantity of 700 million tons of export quality basmati rice was stored in godowns for the last two years and no action has been taken thereupon. Moreover, it is also a fact that the exporters are waiting for the government to buy the said stock.
Therefore, MoC is in consultation with stakeholders to devise a strategy to dispose of the surplus rice, because one time purchase of stocks by the government will not resolve the problem.” a well-placed official source at MoC told this scribe here.
The source said that surplus stock of basmati rice was available with the private sector in the country due to bumper crop and less exports, however, it was difficult to determine the exact quantum of stocks.
“The reason behind decrease in export is depressed prices of rice in international market due to introduction of new low cost high yielding varieties of rice by international competitors” the source added saying that the export of rice was in the private sector.
Other competitors like Vietnam and Myanmar posed stiff competitive challenges, but State Bank of Pakistan (SBP) also quietly imposed sanctions on exports of rice to Iran, resulting in drastic drop in basmati exports to it.
Therefore, MoC was in contact with the stakeholders to devise a mechanism to support the private sector in export efforts. MoC through Commercial Sections assists traders to find prospective buyers abroad. Further, TDAP undertook various promotional activities through trade exhibitions and supports delegations of rice exporters to participate in international fairs.
It is pertinent to note here that rice exports suffered cool response from the world markets as receipts totaled only $1.84 billion by end June this year while rice export valued $ 1.89 billion in the previous fiscal year. Price of Pakistani basmati rice stood at $1,300 per ton in the international market in the fiscal year 2013-14, but it dropped to $1,000 next year.
