The production of Basmati and non-basmati rice will increase by 4 percent in the new fiscal year, subject to monsoons, as the area under cultivation has increased following tremendous jump in exports during the preceding year.
A meeting of the small and medium size rice exporters was held to review the exports opportunities.
During the period July 2003 to June 2004 about 350,851 tons Super Basmati and 242,469 tons Basmati rice was exported. This indicated a rise of 33 percent in Super Basmati and 10 percent in Basmati rice export as compared to pervious year. In terms of value, the exports recorded an increase of 33 percent and 13 percent, respectively.
This year production is expected to range from 4.8 million to 5 million tons Basmati and non-Basmati, subject to monsoons. The cultivation of super-Basmati would increase, followed by Basmati 385 and for 386 grades. It is expected that the growers will prefer to cultivate 385 or Super to earn more.
In Sindh it is expected that farmers will resort to Irri-6 because of better price and D 198, an aromatic rice known as Sindhi Basmati, will be grown less. There is water shortage and this would hinder production. The government agencies should ensure water supply, especially after sunset, to save evaporation.
Zulfikar Thaver, President of Union of Small & Medium Enterprises (Unisame) said that exports can be increased by SMEs by value-addition and SMEs should improve their quality and honour their commitments and one important factor is the cost of production and this can be reduced by strategy and only by reduction of cost they can compete with India.
Pakistani rice has great demand in Arab countries namely Oman, Bahrain, Kuwait, UAE, Qatar, Yemen & Saudi Arabia and we must take advantage of this preferential treatment and improve our packing and processing to compete because India is offering high quality packing attracting large number of buyers.
If our Parboil Rice plants start functioning exports will increase, said Zulfikar, as Parboil Rice is in great demand and the same is imported from India in huge quantities by the Arab countries.
Our exports have increased but there is still vast scope for further improvement. If the matters of availability of vessels and sudden freight increases are closely monitored by Export Promotion Bureau (EPB) and Rice Exporters Association of Pakistan (REAP) the country may reap more benefits.
REAP must take interest in matters which affect exporters and must persuade them. EPB must take serious note of exploitation of situation by foreign carriers and EPB and Ministry of Communications, Ports and Shipping must take up the matter with Conference Lines to prevent undue freight hike.
The SME rice exporters are forced to forego their profits because of the sudden increase in freight rates and their expected gains are turned to losses. During last year freight to Dubai which was $250 per 20-foot container was raised to $350 and freight to Port Louis which was $900 was increased to $1500 and freight to Yemen was increased from $750 to $850 and freight to Saudi Arabia from $600 to $700 and other Arabian countries by $100 to $150 per container.
EPB should take serious note of this matter as freight is an important element of costing. Unisame has also urged the Ministry of Communications, Ports & Shipping to take up the matter with foreign shipping lines who are exploiting the situation.