"Despite strong competition in world markets because of bumper crop in all rice producing countries, the increase in Pakistani rice exports was possible on the back of tremendous efforts of local rice exporters and the government's business friendly policies," Abdul Rahim, Chairman, Rice Exporters Association of Pakistan (Reap) told the Business Recorder.
However, the government intervention in rice trade created some difficulties for rice exporters and affected exports of this commodity, he added. Pakistan exported a total of 2.583 million tonnes of rice to different countries in the period under review. Out of which 0.801 million tonnes Basmati rice worth $908.768 million and 1.782 million tonnes non-Basmati variety worth $920.151 million was exported during this period.
He was optimistic that the total exports will cross $2 billion. "If this trend continues, we will be able to achieve $4 billion target under our "Vision 2012," he added. He appreciated the Reap members, who have shown this remarkable performance despite global financial recession and international depressed markets position. In the last fiscal year ie 2007-08 Pakistan exported 3.5 million tonnes of rice valuing more than $2.2 billion, making Pakistan the third largest rice exporting country in the world.
He said that Reap is continuously working to explore new markets to increase rice exports. In this regard, Reap has sent trade delegations with the help of TDAP to Royal Kingdom of Saudi Arabia and Republic of South Africa. These were the most successful delegations which got huge orders, he added.
"We have planned to send two more delegations in June to Qatar and the EU countries as well to explore new rice markets and to promote Pakistani rice which is the best quality rice in the world," he said. Reap has also planned to send delegations to some other big rice markets including Kuwait, Iran, Senegal and Zambia.
He said that Reap has established the most modern rice laboratory in Karachi. The laboratory would be formerly inaugurated by Federal Commerce Minister Makhdoom Amin Fahim any time in the first half of June 2009. "This laboratory will help us achieve our $4 billion target of rice exports under "Vision 2012," he added.
The Reap Chairman demanded of the government to support the rice trade to earn more foreign exchange for the country. He gave some proposalssuggestions to the government for the betterment of rice export trade: He suggested reducing withholding tax on the export of rice from 1 percent to 0.5 percent and matching grant facility for rice exporters in re-finance part II only for one year.
He also demanded that at least one or two Reap members should be taken in all overseas government delegations as this will help in capturing some rice market share of that particular country. He also demanded that the top priority should be given to law and order situation, especially in Karachi. He said many countries link their imports with exports on a reciprocal basis to get market access for each other.
"We have done this with Kenya and can do it with many countries for instance Malaysia for ricepalm oil," he added. He said growers should also be given subsidy on the purchase of seeds, pesticides, etc, and also on electricity. He said the government should not intervene in rice purchase without consultation of Reap. The Reap representatives should be taken on board for both Kala Shah Kaku and Dhokri Rice Research Institutes.

Copyright Business Recorder, 2009