Speaking to local reporters yesterday, the Vice-Chairman of REAP said that while rice exports by India and Burma are growing, Pakistan’s rice exports in the current fiscal year (July to June) are estimated to decline around 4% to about $2 billion, compared to around $2.08 billion in FY 2011-12 and $2.09 billion in FY 2010-11. The decline in exports is due to low prices offered by India which can’t be matched by Pakistan, said the REAP official.

He said that Pakistan rice has become uncompetitive in the international rice market, not due to lower supply, but because of hoarding of rice by local businessmen. “Local investors have no concerns for exports. They hold the stocks, create its shortage in local market and then earn their profits by raising its prices,” he told local sources. The REAP official also urged the government to provide subsidies to rice farmers to make Pakistan rice competitive in the international rice market.

Meanwhile the Chairman of REAP has said that improvement in law and order and political stability are essential to revive rice exports. He said that traders from Europe dread visiting Pakistan due to the negative perception of the country in Europe and other rice importing countries.

Pakistan exported around 3.29 million tons of rice in the FY 2011-12, down about 10% from 3.67 million tons exported in FY 2010-11. According to the Pakistan Bureau of Statistics (PBS), rice exports during July to September 2012 have plunged almost 45% to around 344,641 tons, with basmati exports declining 52% to 132,119 tons.

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