20000104

Govt taking steps to achieve $600 m rice export target

AMER SIAL

Islamabad: Despite a huge surplus of 2.38 million tonnes of rice the country has exported only 0.472 million tonnes valuing $ 164.200 million during July-November 1999-2000.

This unimpressive export of rice in five months shows that there was no major demand of rice in the international market, as most of the rice importing countries have good rice production this year, sources in the commerce ministry said.

The country this year produced 4.9 million tonnes rice and has three million tonnes surplus stock. Last year, the country earned $ 522 million by exporting rice, and the commerce ministry has set a target of $ 600 million from rice exports this year.

Sources said that the government decision to maintain the quality of rice through 'Quality Review Cell' (QRC) may help in the export of rice in the second half of this fiscal. The quality check implementation has already helped in fetching a better average unit price per tonne of basmati rice at $ 475.32 against the $ 458 in 1998-99.

The government has taken different steps to stop Indian businessmen from selling Pakistani basmati as Indian, and has decided to increase the export of branded and packaged rice. The government has already lifted duty on the import of rice packing machinery so as to reduce export of basmati in bulk. Indian importers in the Gulf area used to buy basmati rice in bulk from Pakistan and afterwards packed, and labelled it, and marketed it as Indian basmati.

Sources were hopeful that QRC would ensure that the same quality, as stated on the packing, is being exported. This step would reduce the number of complaints from the importing countries. Already, most of the importing countries keep a strict vigil on rice imports from Pakistan and some have even threatened to make payment after the commodity is thoroughly inspected when it reaches their port.

The decision to deal with the countries which wanted a deal on a government-to-government basis was taken to export the big surplus of 4.9 million tonnes. The surplus produce would be lifted by the importers only if a stricter quality check is enforced on the exports. Otherwise, the country may be left with an even bigger unsold (exportable) surplus this fiscal than last year, sources added.