KARACHI: For the first time in the history, Pakistan’s rice sector has achieved a historic milestone of $ 3.88 billion exports, up by 78 percent, during the last fiscal year 2023-24 (FY24) due to the ban on the export of Indian rice.
Rafique Suleman, former chairman of the Rice Exporters Association of Pakistan (REAP), Member Executive Committee FPCCI and former convener Rice Export Committee FPCCI has said the rice export sector has performed well and earned more foreign exchange for the country.
Pakistan’s rice exports posted a 60 percent growth in quantity and 78 percent increase in value in the last fiscal year compared to the previous year (FY23). Pakistan exported some 6 million metric tons of rice, valued at approximately $ 3.88 billion during FY24 as against 3.56 million metric tons were exported, worth $ 2.15 billion.
“Pakistani exporters have got good price of the rice in the international market due to ban on rice exports by out competitor India,” Suleman said.
Expressing his delight at this achievement, he said that rice exports had been stagnant for several years, but under the current leadership of REAP and planned marketing of Pakistani rice, this historic target has been achieved.
REAP officials and leading rice exporters are actively exploring new markets for Pakistani rice through trade delegations. They have sought urgent government-level negotiations for free trade agreements with West African countries, Indonesia, and Malaysia. Suleman suggested that a REAP trade delegation, along with the Commerce minister should visit these countries to boost exports.
He acknowledged the challenges that lie ahead for the next year, particularly concerning the recent water crisis. Other countries like Thailand, Vietnam, and China produce 2-3 rice crops annually due to their efficient water management, resulting in higher production. Pakistan, with total rice production reaching 9 million tons, can also achieve higher yields with improved water storage and irrigation infrastructure, he mentioned.
“The construction of dams would enable the irrigation of millions of acre-feet of land, allowing for multiple rice crops annually and generating inexpensive electricity to alleviate the country’s energy crisis,” he added.
He urged the government to permit rice cultivation in more extensive areas to maximize export potential. Increased exports would bring in much-needed foreign exchange, crucial for the country’s economic stability.
He mentioned that despite Iran being the largest buyer of Basmati rice, exports have been severely affected due to the non-availability of a banking channel. This unresolved issue has caused substantial losses for exporters.
Suleman emphasized that Pakistani rice exporters are dedicated to the country’s economic development, investing heavily in advanced technology and packaging to add value to their rice products.
He criticized the recent budget’s shift from a fixed tax to a normal tax system for exporters and demanded that the Prime Minister withdraw this tax immediately. He called for an urgent meeting with the rice exporters’ delegation to address their concerns, emphasizing that despite being a major export sector, they have been overlooked.
Looking ahead, he projected that with the acceptance of their proposals and proper support, Pakistan’s rice exports could reach up to $ 5 billion by 2027.
Copyright Business Recorder, 2024
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