Rice exports cross $1bn in 7-mth FY11

KARACHI: Rice exports of the country have surpassed $1 billion during the first seven months of the current fiscal year (FY 2011), figures released by Rice Exporters Association of Pakistan said Tuesday.
According to the figures, rice exports showing an increase of 5 percent have gone up to $1.2 billion during 7MFY-11, as compared to $1.14 billion in the corresponding period last year.
Although the rice  exported is less in quantity, as 2 million metric tonnes has been exported in the said period compared with 2.3 million metric tonnes last year — but because of better average unit price of rice, the value is high, Irfan Ahmed Sheikh told Daily Times. The average unit price stands at $548 as compared to $492 last year, he said.
The exports of non-basmati rice remained decreased by 22 and 13 percent in quantity and value respectively, however basmati rice exports went up by 17 and 12 percent in quantity and value respectively during the said period.
REAP has been maintaining the earlier trend and exporters are very hopeful that the export of rice from Pakistan will cross $2 billion, Irfan said. However, last year exports were $2.2 billion.
Including South Africa, Middle East and Bangladesh remained major export markets during the first seven months. In order to explore new markets exporters delegations would be sent to Niger and Bangladesh.
He said that due to the recent disastrous floods, crops of non-basmati rice faced some damages in the province of Sindh, which also resulted into the rice export trade. However, it is a good sign that this year, “we are getting better price of our rice than last year.”
He said that exporters are putting huge investment and installing the latest rice machinery and imported rice plants and working towards the value addition of rice.
He said that the exporters are trying hard to find new ways and means of increasing export of Basmati, IRRI and parboiled rice from Pakistan to international markets. He was of the view efforts are being done to increase rice production to 7.5 million tonnes from existing 6.5 million tonnes by the year 2015 and new markets for the export of rice are also being explored.
He said rice exporters are facing serious issues, like law & order situation, power shortages, financing problems with State Bank of Pakistan etc. “We are very hopeful that if these problems are resolved, rice export industry will definitely give better results,” he said.

(Source: http://www.dailytimes.com.pk/default.asp?page=2011\02\09\story_9-2-2011_pg5_15)