Rice exports from Pakistan maintained upward momentum and touched all time high level of $2.07 billion mark in the last fiscal year (FY19). According to rice export statistics, in term of quantity, Pakistan exported total 4.097 million metric tons of rice during July-June of FY19 compared to some 4.082 million metric ton in corresponding period of FY18. During the last fiscal year, some 537,133 tons basmati rice and 3.545 million tons other varieties of rice were exported.
In term of value, Pakistan earned all time higher foreign exchange amounting to $ 2.074 billion in FY19 up from $ 2.035 billion, showing 2 percent growth.
Convener Rice Export Committee of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and former chairman Rice Exporters Association of Pakistan (REAP) has said that Pakistan's rice exports have posted growth in a difficult time, when the country's remaining major exports were on decline.
He said that there is need of development of new seed varieties to earn more foreign exchange, but unfortunately it requires regulatory framework. "Pakistan has exported over $ 2 billion worth rice in absence of Research and Development (R&D). We can export over $ 5 billion rice in next five years with some concrete efforts towards introduction of new rice seeds and varieties," he added.
Presently, Pakistani rice exporters are importing hybrid rice seeds from China on self-made basis to get better yield, however these hybrid seeds are not successful in long term, Rafique mentioned.
Regulatory framework should be devised for development of high yielding and commercially viable varieties and accordingly intern registering them for Intellectual Property Rights (IPR), he suggested.
China, Kenya and European Countries were leading importers of Pakistani rice. While, during the last fiscal year, exports to Indonesia also resumed and some 70,000 tons non-basmati rice was exported, he informed.
He said that Kenya is the largest buyer of Pakistani non basmati rice and approximately Pakistan has exported over 400,000 metric tons of rice during the last fiscal year. One of the largest buyer of Pakistani Basmati rice was Iran, but due to the non availability of banking channel, Pakistani rice exporters are unable to export rice to Iran, he mentioned.
Supply chain of rice should be regulated through centralized system to confront future challenges, he said added "sanitary & phytosanitary standards are also biggest challenge for Pakistani rice and there is need to devise a long term policy. In addition, grain standards like Thailand and India should be implemented at rice markets to ensure the quality of rice".
Rafique also urged for up-gradation of local mills, improved storage practices and better transportation channel from farms to markets to avoid breakages and insecticides. Presently, Pakistan is losing some 15 percent of rice grains/ crop due to bad handling and storages practices.
He said that Minister of Commerce Abdul Razak Dawood is fully supporting and assured full support for increase in rice exports. With present government's efforts, Qatar has recently lifted ban on export of rice from Pakistan and also placed a 5000 tons rice export order.
There is need to explore new market and renegotiate the Free Trade Agreements with Indonesia, China and EU to further enhance the rice exports.
He said that Pakistan's rice crop is also facing a challenge of higher cost of production against regional competitors, which are providing subsidies to farmers to produce high yield. Government should support the farmers for an improved crop, he demanded.
Rafique has said that the milestone of all time exports has been achieved by the consistent efforts and under the leadership of Safdar Mehkari Chairman REAP and former Chairman REAP Abdul Rahim Janoo as they worked hard to increase the Pakistan's rice export volume.
He also warned that uncertainty of exchange rates may hit the rice exports in future; therefore there is need to of sustainable exchange rate so exporters can finalized their deals with foreign buyers.