Pakistan can avail a golden chance of penetrating Chinese market by exporting a sizeable rice of Irri-6 variety there and it would be a safe and uncompetitive market for Pakistan, said Federal Food, Agriculture and Livestock Minister Malik Sikandar Hayat Bosan while talking to newsmen here on Sunday. He said the government is actively considering a proposal making an attempt of penetration by supplying good quality rice on competitive rates, adding if we succeed in attaining the Chinese order for rice then it would have no need to explore other markets.
Bosan optimistically said there were bright prospects of sizeable exports of Irri-6 variety of rice to China, adding the opportunity was explored during a recent visit of Prime Minister Shaukat Aziz to China.
The minister said the government is looking into the matter seriously for availing this option, which would not only give boost to rice cultivation in the country, but at the same time-enable the rice growers to get better prices for their produce.
He also rejected the rumours and impression being given by certain quarters that Kenya has increased duty on the import of Pakistani rice, and clarified that such an increase in duty has not yet been imposed. He, however, said the government of Kenya is said to be considering such an increase.
He said the government of Pakistan is fully aware of the situation, and would take all possible measures to safeguard the interests of the rice growers and exporters.
The minister expressed his satisfaction with the phenomenal growth in cotton production in the country this year, and set a new record and the bumper crop would have significant impacts on the national economy.
He said a sizeable cotton crop this season has particularly been much advantageous for the local textile industry as they are benefited with the abundant supply of raw material at the cheapest price. This would also help compete in the world market to their advantage, he added.
Sources said Pakistan's rice season runs from April to November, but supplies have not yet reached its peak as farmers are releasing stocks slowly as they aim for higher prices.
Iraq, Sri Lanka, Bangladesh and East African countries are traditional buyers of Irri-6 from Pakistan. The fine-quality Basmati rice is popular mainly in the Middle East and Europe, they added.
Sources said that demand for Basmati rice from the Middle East had also increased, as prices of the Basmati saw a sharp increase during 2004 on the back of export orders. The new crop is expected to yield 4.3 to 4.6 million tones, with domestic demand at 2.3 million. Pakistan expects to export 1.9 million tones in the current fiscal year against the previous year's 1.72 million.
The Irri-6 variety mostly cultivated in Sindh was the hardest hit, as exporters could not face tough competition from India, China and Vietnam. Its export dropped up to 41 percent because of high cost in the domestic market.
A steep fall of over 28 percent in rice export was recorded during the fiscal 2001-02 as the country could only manage to export 1.287 million tons as compared to 1.805 million tons of 2000-01.
The drastic fall up to 0.518 million tons in rice export resulted in lesser foreign exchange earnings at $352.08 million, whereas during the fiscal 2000-01, the country earned $417.12 million, the figures given by the QRC inspection cell of Rice Exporters' Association of Pakistan (Reap) indicates.