KARACHI: Rice exports in FY2023-24 reached a record high, with a significant jump of 62 per cent in volume and 83 per cent in value (in dollars) compared to the previous year.
According to data from the Pakistan Bureau of Statistics, rice exports increased to 6 million tonnes from 3.72 tonnes in volume, and to $3.93 billion from $2.15 billion in value.
This growth is primarily attributed to a surge in domestic rice production, which hit an all-time high of 9.9 million metric tonnes (MMT).
“Some industry players from REAP (Rice Exporters Association of Pakistan) have attributed this growth to the ‘Indian factor’ where India imposed an export ban on coarse milled white rice and a 20 per cent export tariff on par-boiled, which I refute in absolute term,” said Shamsul Islam Khan, a leading rice and commodities exporter.
Shams elaborated that the Indian government was exporting rice through G2G at premium prices but restricted the private sector from coarse rice exports to keep their domestic rice prices lower to win elections. Now again there are news reports that India may ease export restrictions but will not allow exports freely as there are risks that after the short wheat harvest, domestic demand pressure will increase on coarse rice, which is mainly consumed in India.
He added that Pakistan has established a sizeable global market share due to its better quality of rice at affordable prices. “El Nino effects will continue to affect rice production in the Far East, and import demand will spur. Pakistan has merely any domestic consumption of coarse rice and is mainly consuming 4 MMT Basmati rice; consumption is growing due to popular demand of biryani and pulao,” he said.
Pakistan’s rice production is likely to surpass last year’s production to reach over 10.5 MMT as coarse rice area under cultivation has replaced cotton and maize crops. Following an increase in domestic rice production, and if the rupee devalues, our exports average unit price may fall from $575 to $550 per tonne for coarse rice.
“Since decades, rice hoarding, smuggling to Iran and Afghanistan major threats to our rice exports, badly affecting exports of our Basmati rice. Provincial governments must take stern action against rice hoarding. The menace of smuggling can be dealt with through border security forces and newly established authority for this purpose,” he said.
Pakistan’s basmati exports grew only 34.82 per cent in terms of value and 29.91 per cent in terms of quantity exported, 773,775 M/tonnes worth US$877.07 million in FY24. “Yet we failed to achieve its true export potential of $2 billion. Supply chain issues like aflatoxin and MRLs of fertilisers and pesticides are major threats, and the Punjab government, through provincial concerned quarters along with REAP, must come out from chilled offices and step into paddy fields to educate Basmati growers and give direct subsidies to procure and use costly pesticides that are not banned by the EU, UK, and US markets for imports of rice,” Khan said.
Punjab is home to Basmati aromatic rice, which fetches over $1,100 per tonne, and this is the only prized variety, which can help us increase our rice exports. India is exporting over 4 MMT of rice labelled as Basmati but having no aroma in it. If UK, EU, and USA labs tested the aroma of parboiled (Sella 1121, 1509, or other Pusa rice samples), they would be surprised to find no aroma, which is the main characteristic of Basmati.
The EU, the champion of consumer rights protection and protection of Geographical Indications (GIs), must know that GI law and GIs are exclusivities. “If the word Champagne is claimed exclusively by a limited area of Champagne, how can the entire Indo Gangetic plains land area be expanded for Basmati GI tag in India?” he asked.
Pakistan has lost its major traditional markets to India just because of the Indian duplicate (fake) version of Basmati, which looks like Basmati but has no aroma, he said.
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