KARACHI: With the removal of the Minimum Export Price (MEP), Pakistani rice traders can now export without price restrictions, enabling them to better compete with India in the global market.
Chairman Rice Exporters Association of Pakistan (REAP) Chela Ram Kewlani has welcomed the government’s decision, calling it a major milestone for the industry. This move will help to enhance Pakistan’s competitiveness in the international rice market and boost the country’s rice exports to record levels, he said.
On September 27, 2024, the Ministry of Commerce officially removed the MEP on rice exports to provide relief to Pakistani traders and exporters.
Govt removes rice MEP cap to support exporters
Previously, Pakistani exporters were required to sell rice in the international market at a minimum price, determined by the Ministry of Commerce in consultation with the REAP.
However, India recently lifted its export ban on rice and there were concerns that the MEP could harm Pakistani exports. In response to a request from REAP, the federal government has now removed this restriction to safeguard Pakistan’s rice trade.
Pakistan’s rice export sector has seen significant success, achieving a record high of $4 billion rice exports in FY24 during the tenure of REAP Chairman Chela Ram.
“This is a positive and timely step by the federal government, which will allow rice exporters to compete more effectively in global markets and further boost Pakistan’s rice exports,” Chela Ram stated.
He also highlighted REAP’s ongoing efforts to explore new markets to increase foreign exchange earnings for Pakistan, which is in dire need of foreign inflows to strengthen its reserves.
Chairman REAP expressed optimism about the future, noting that Pakistan is expecting a bumper rice crop this year, which should help achieve new export highs by the end of the fiscal year.
He also extended his gratitude to Federal Minister for Commerce Jam Kamal Khan for his timely action in removing the MEP, which he believes will protect Pakistan’s rice export market amid India’s decision to eliminate its own export price restrictions.
Notably, Pakistan’s rice exports saw substantial growth in the first two months (July-August) of the current fiscal year (FY25), a trend that is expected to continue following the removal of the MEP, he said.
In term of value, rice exports posted a growth of 98 percent during the first two months of this fiscal year. Pakistan earned $465 million in July-Aug of FY25 compared to $234 million in same period of last fiscal year (FY24), depicting an increase of $ 231 million.
Copyright Business Recorder, 2024
Comments