Pakistan rice exports to reach record level

Pakistan, the world’s fifth biggest rice exporter, may ship a record 4.1 million metric tonnes by the end of next month, as much as 37 percent more than last year, according to the Rice Exporters Association of Pakistan. “We have exported 3.5 million tonnes of rice and are hoping to export another 500,000 to 600,000 tonnes by the end of June,” Chairman Malik Jahangir told bloomberg.com in a telephonic interview from Lahore. The country will earn $2.25 billion from the exports compared with $2.02 billion in the 12 months to June 2009, Jahangir said. Pakistan is looking forward to increasing exports to help expand its economy. The increased shipments may exacerbate a drop in global prices and boost competition with Vietnam and Thailand - the world’s two biggest exporters. “Vietnam threw their non-basmati rice in the market, so we had to lower our prices as well,” said Rafique Sulaiman, vice chairman of the association. Rice futures declined 0.2 percent to $11.60 per 100 pounds on the Chicago Board of Trade on Wednesday, and are 22 percent lower over the past year. Thailand’s 100 percent grade B white rice, a benchmark for Asia, was last set at $481 a tonne on April 28 compared with $571 about a year ago. Pakistan set a target for rice output at 6.4 million tonnes this year, compared with 6.9 million tonnes last year, according to Federal Agriculture Minister Nazar Muhammed Gondal in October. The grain is Pakistan’s second biggest export after textiles.