Home »Agriculture and Allied » Pakistan » Rice exports post healthy growth in Fiscal Year 2018

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  • Jul 12th, 2018
  • Comments Off on Rice exports post healthy growth in Fiscal Year 2018
Rice exports from Pakistan posted a healthy growth of 28 percent to reach two billion dollar mark in the last fiscal year (FY18). According to Rice Exporters Association of Pakistan (REAP), Pakistan has exported total 4.023 million metric tons of rice amounting to $ 2 billion during FY18 compared to some 3.44 million metric tons rice amounting to $ 1.6 billion exported in FY17, showing a significant growth of 27.7 percent in terms values and 17 percent in terms of quantity.

Rafique Suleman Senior Vice Chairman has said that this growth was also become possible due to the recent two tenders of Indonesian authority BULOG for total 200,000 metric tons of Pakistani rice, which fetched a remarkable foreign exchange for our country. Although last year REAP has achieved a milestone but this fiscal year exported may face multiple challenges, he added.

He informed that Kenya has been the largest buyer of Pakistani non basmati rice and Pakistan has exported 439,000 metric tons of rice amounting to $ 171 million during the last fiscal year. "Previously, there was a preferential duty in Kenya for Pakistani rice but Kenya has imposed import duty of 35 percent OR $200 (whichever is higher) of which rice exports to Kenya is declining. He requested Ministry of Commerce, to coordinate Kenyan Government for imposition of preferential duty, so that trade balance between both countries should be stable.

China used to be the 2nd largest buyer of non basmati rice; however exports to china are also on decline. Pakistan has exported 272,000 metric tons of rice during FY18 compared to 589,000 metric tons of rice in FY17. "In the context of CPEC, there are billion dollars investment opportunities and there is need that government of Pakistan must initiate talks with China to include Pakistan in the duty regime like ASEAN countries, so that rice exports to China may again increase", he demanded.

Rafique has also shown serious concerns on the recent reports of shortage of water. He said that other countries like Thailand, Vietnam, China etc. avails 2-3 rice crops in a year and their annual rice production is approximately 100 million tons, whereas our annual rice production is hardly 7 million tons, that is why our rice export is stagnant to some 4 million tons since last many years. He said that after the construction of New Dams, Pakistan can preserve the water like other countries and can also get more than one crop of rice per years which will make revolution in our agricultural industry. "We may generate huge quantity of very low cost electricity which will be useful to cover the shortfall of energy crisis of our country. Every province of the country will be able to get additional millions of acre feet water after the construction of new dams", he added.

He was of the view that it's the need of hour that government of Pakistan should allow rice sowing in more lands, so that we can get more rice to export more rice to get more foreign exchange.

He has shown his concern that there is no Research and Development work has been made in rice trade. "Our Research Departments are really sleeping and Pakistani rice exporters are importing hybrid rice seeds from China on self-made basis to get better yield. We are doing the job, which have to be done by the concerned government departments", he added.

Rafique said that Pakistani rice exporters are putting their extra ordinary efforts for fetching valuable foreign exchange for the growth of economy of our beloved country and making huge investment for installing world's latest rice machinery and most modern technology for value addition in rice. REAP has already requested State Bank of Pakistan for allowing Islamic Financing facility for storage of Agricultural produce.

He informed that REAP is continuously sending trade delegation to various countries for the forceful marketing of Pakistani rice. In this regard, a delegation is planned to visit Brazil, Argentine and Chili. Rafique emphasized that few years back exports of basmati rice were one million tons, whereas in last fiscal year Pakistan has only exported half a million tons basmati rice. One of the largest buyers of Basmati rice was Iran, but due to the non availability of banking channel, Pakistani rice exporters could not export basmati rice to Iran, he mentioned. He also requested the government for appointment of educated and efficient Commercial Secretaries/ Counselors in Pakistani Missions abroad in important rice buying countries. As due to the negligence of some Commercial sections of our missions, Pakistani rice exporters are facing severe hardships in those countries, he added.

On domestic side, these are also multiple challenges. For example, he said, in some cases, exporters have to call back their rice containers return to Pakistan. Unfortunately, Custom department demands overall tax of some 7.5 percent for release of returned commodity container. This is not justified as exporters have already observed huge losses in terms of ports and shipping charges. He appealed the government to waive this huge tax to rice exporters, as despite the 2nd largest export trade this sector has been neglected.

Rafique Suleman Senior Vice Chairman has said that the $2 billion milestone has been achieved by the consistent efforts of Chaudhary Samee Chairman REAP, Hamdullah Khan Tareen Vice Chairman REAP under the leadership and guidance of Abdul Rahim Janoo Former Chairman REAP.

Copyright Business Recorder, 2018


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