Basmati rice exports in the first half of FY08 (July-December 2007) declined by 57,443 tons, or 15 percent, to 316,760 tons against 374,203 tons exported in the same period of FY07 (July-December 2006).
On the other hand, as per value basis, total rice exports increased by 13 percent due to value addition and massive increase in rice prices in the international market.
The value of rice exports reached $248.975 million in the period under review against $220.817 million in the same period of last year, up by $28.158 million.
According to figures available, the average unit price of rice surged by over 33 percent, to $786 per ton, in the six-month period as compared to $590 in the same period in a year ago.
The figures show that the exports of super basmati declined by 13 percent as 241027 tons of this variety was exported in this period against 278058 tons in the same period in 2006. The basmati variety export decreased by 21 percent to 75,733 tons in July-December 2007 period against 96,145 tons exported in the same period of last year.
The value of super basmati increased by 14 percent to $196.804 million in this period against $172.925 million in the same period in 2006. The massive increase in rice prices in the international market was mainly due to shortage of crop as the production of rice declined by 17 percent (5 million tons) all over the world in last season.
Middle East is the major market for Pakistani basmati rice, which imports over 50 percent of total basmati rice exports. The basmati variety of rice is also exported to USA and some European countries.
Non-basmati varieties are exported to Sri Lanka and some African countries including Kenya, South Africa, Mozambique and others. Pakistan exports its rice to 72 countries around the globe. Rice prices rose sharply in local markets as massive increase was witnessed in the prices of all varieties of rice.