Rice Exports From India Climbing to Record on Mideast Demand

Rice shipments from India, the world’s largest producer after China, will probably expand to a record as buyers from Iran to Saudi Arabia boost purchases of aromatic basmati grain used in biryani and pilaf dishes.

Exports are set to increase 7.8 percent to 11 million metric tons in the 12 months through March from a year earlier, said M.P. Jindal, president of the All India Rice Exporters Association. Sales of basmati may jump 14 percent to 4 million tons as cargoes of non-basmati varieties advance 4 percent to 7 million tons, he said in a phone interview.

Shipments are increasing from India as Thailand, once the world’s biggest supplier, is also set to boost exports. The Southeast Asian country has built record stockpiles big enough to meet about a third of global import demand under a buying program that started in 2011. Farmers are demanding the government sell the reserves to pay for their crop.

“India has an edge over other countries because of quality and price competitiveness,” said Faiyaz Hudani, an associate vice president at Kotak Commodity Services Ltd., a Mumbai-based broker. “When the output is high and the pace of growth is stable, there is no cause of concern.”

Rising sales may benefit Indian shippers such as KRBL Ltd. (KRB), LT Foods Ltd. (LTFO) and Kohinoor Foods Ltd. (KFL)

India is targeting production of 106.3 million tons in the year through June, compared with a record 105.3 million tons in 2011-2012, according to the Agriculture Ministry. The harvest would add to global inventories estimated at 109 million tons in 2013-2014 by the London-based International Grains Council.

Thai Stockpiles

The price of Thai 5-percent broken white rice, a benchmark grade, fell 23 percent in 2013, the most in at least five years, and was at $460 a ton yesterday. A slump to $370 by March is possible as grain is offloaded from state granaries, according to Chareon Laothamatas, president of the Thai Rice Exporters Association. Rough-rice futures on the Chicago Board of Trade rose 0.6 percent to $15.625 per 100 pounds yesterday.

Thailand may not be able to find enough buyers for its stockpiles because major importers in Africa and the Philippines increasingly prefer grain from Vietnam and India, according to Darren Cooper, a senior economist at the council.

“Thailand will try to dispose of the stockpiles at whatever price it gets,” said B.V. Krishna Rao, managing director of Pattabhi Agro Foods Pvt., an Indian exporter. Shipments may not be affected by rising Thai sales as the two countries catered to different markets, he said.

Basmati Demand

The U.S. Department of Agriculture expects Thai inventories to reach a record 14.7 million tons this year, compared with 6.1 million in 2010. Shipments will probably be 8.5 million tons, the USDA forecasts.

Basmati rice exports from India are climbing as Iran is building reserves, said Jindal at the exporters association. Sales to Iran jumped to 1.28 million tons in the nine months through December, exceeding the 1.07 million tons for whole of 2012-2013, according to the association. The country is India’s biggest buyer of basmati and imports 1.5 million tons annually.

“The price of basmati was good this year and overseas demand was more throughout the year from all countries including Iran and Saudi Arabia,” Jindal said on Feb. 4. “Exports to Iran are higher as it buys for keeping certain reserves.”

India supplies 65 percent of the overseas basmati rice market, while Pakistan accounts for the rest, according to the state-run Agricultural and Processed Food Products Export Development Authority. Saudi Arabia and Iran are the two major buyers of Indian basmati, while Africa is a major destination for non-basmati varieties.

Declining Indian rice prices affects rice export

Rice Exporters Association of Pakistan (REAP) has expressed concern over the alarming decline of Pakistani Basmati rice exports in the wake of declining rates of Indian rice.

REAP urged the government to take appropriate measures for the betterment of Basmati rice exports. The government should particularly take action against the elements dumping Basmati rice and causing artificial price hike in local markets.

Jawed Ali Ghori Chairman REAP informed due to increased tariffs of electricity and gas, millers have to run their mills on diesel generators, which was multiplying their operational cost and for this reason prices of Basmati rice have increased by 15 percent.

On the other hand due to lower prices of Indian rice, Pakistan was facing 53 percent decline during the last six months of current fiscal year 2012-13 as compared of last fiscal year 2011-12.

Pakistan has exported 239,764 metric tonnes of Basmati rice valuing $233 million during July 2012 to December 2012, whereas for the same period in last year, we had exported 506,904 metric tonnes valuing $440 million. He claimed during the last six months, Pakistani rice was not getting good price from Iranian importers and for the same reason exports to Iran via Quetta Border has shown 66 percent decline. In addition tender of rice from Qatar government has been awarded to India due to their lower prices. He was worried Pakistan has not getting new orders from Oman, Abu Dhabi and Doha.

Indian rice for CARs via Pakistan

FOR quite sometime it was expected that Pakistan will ultimately become a conduit for the export of Indian goods to Afghanistan and Central Asian Republics in addition to in Pakistan and that is now becoming a reality. A report in this newspaper Sunday revealed that the Indian rice exporters are eyeing export of Rice to Central Asian Republics through Pakistan to capture the vast market.

The price of Indian rice for export purposes is slightly lower than Pakistani rice because of concessions given by the government. A Pakistani rice exporter has disclosed that some visiting Indian exporters were found searching for ways to tap markets in the region and were interested to export their commodity to CARs through Pakistani land route which costs less. Though presently there is no agreement to allow the transportation of Indian goods through Pakistan to other countries but there is concern in the business community that when the MFN comes into operation, India would certainly seek this facility. Though Pakistan has delayed the grant of the MFN status to India together with the abolition of the negative list for trade due to reservations of various industries but ultimately this would be done at some point of time. Pakistani rice has superior quality and due to short distance, the country is competitive but if Indian rice export was allowed through the transit facility, Pakistani rice would lose its competitiveness. We are not against facilitating Indian goods to other countries but at the same time Pakistan will have to watch its own interests on core issues. Pakistan has suffered a lot in the past and there is consensus that national interests must be kept in view while granting MFN status and other facilities to the neighbouring country.

Pakistan Rice Exports to Fall by 1 Million Tons After Flood Destroys Crop

Pakistan’s rice exports will decline by 1 million metric tons this year after flooding destroyed as much as 20 percent of the crop, according to a trade group. “We won’t need to import rice,” Malik Jahangir, chairman of the Rice Exporters Association of Pakistan, said in a telephone interview from Lahore today. “Our exports usually average 4.5 million tons and will be about 3.5 million tons this year.” Pakistan produces 6.5 million tons of rice a year.

Pakistan Non-basmati rice production to fall almost 20%

Production of non-basmati rice will fall by about 15 to 20 per cent from previous estimates, estimate rice exporters. “We had expected nonbasmati rice cultivation to yield about 4.5 million tons this year but due to flooding in various parts of Sindh, where much of this kind of rice is grown, we are now expecting up to 800,000 tons to be lost,” said Chairman of Rice Exporters Association of Pakistan (Reap), Malik Jahangir, on Wednesday. Jahangir explained that Larkana, Jacobabad, Shikarpur and Dadu districts are the main areas in Sindh where non-basmati rice is cultivated. Large parts of these districts have been flooded in recent days. Irrigation officials have also warned that fresh flooding may also be witnessed in many of these areas. Many of the crops that were cultivated in these areas have been destroyed. Agricultural experts also fear that gushing waters have washed away the nutrient- rich top soil of many agricultural areas. They say that farmers may not be able to achieve high yields and in some of the worst affected areas, cultivate crops at all for the next few years. Cultivation of high-quality basmati rice has also been affected although not as badly as non-basmati varieties. “Most of the areas where basmati is grown are in Punjab and have not been affected significantly by the floods,” commented the Reap chairman. Meanwhile, prices of rice have increased in local markets during Ramazan. Supplies have been affected due to flooding, Reap officials said, adding that transportation from fields to mills and then to markets is difficult and more costly because of the flooding. Jahangir asserted that because of supply constraints, the price of basmati rice has increased by Rs10 to Rs70 per kilogramme in wholesale markets while rates of nonbasmati rice have risen by Rs5 per kilogramme. Last month, the United Nation’s Food and Agriculture Organisation (FAO) issued a report that said Pakistan would lead an increase in global rice exports. The FAO report had also predicted the country’s paddy production for 2010 to be about 10.2 million tons, 0.1 million tons higher than the previous year. The report had cited that non-basmati varieties of rice are leading export growth for the country. This means that downgraded estimates for production of non-basmati rice will also likely hurt the country’s export prospects. Experts point out that earlier in the year, non-availability of water had been a cause of concern for farmers. They say that while production of basmati rice will probably not suffer much, achieving record exports may not be a feat that can be accomplished, at least not this year.

Insider report on Pakistan rice and flooding situation

This comes from one of my connections in Pakistan. Pakistan is facing severe rains and flood. The Indus river passing through the centre of the country has damaged communication means, properties and crops specially in province of Punjab and Sind, the rice growing areas. Further rains have been forecasted and will be continued till 1st week of September. Cotton, wheat and Pulses crops have damaged / destroyed. It is expected in the coming months prices of essential items will further rise while during the last 2 weeks prices of local rice market have increased by $ 30 - 40 PMT. The water level in Punjab have started falling and it is expected the situation will be clear within next 10days. Currently the big wave of flood water is passing through the Sind province reported some rice growing area Irri-9 and Irr-6 have also been effected by the flood water. The situation will be clear after falling of water level. NEWS FROM NET Pakistan Floods Destroy Crops Worth Billions By news desk on August 13,2010 Flood surges triggered by unprecedented monsoon rains have swept devastating low-lying areas of Punjab and Sindh provinces, the densely populated economic and agricultural heartland of Pakistan with estimates of around half a million MT each of wheat and sugar crops been totally destroyed. Pakistan's Finance Ministry said this week the floods would hit growth and this year's gross domestic product growth target of 4.5 percent would be missed, though it was not clear by how much. Growth was 4.1 percent in the last fiscal year. On damage to the rice crop, the farmers' association put the losses at about 200,000 MT of rice, an estimate also supported by a Singapore-based trading company. The United Nation's Food and Agricultural Organization (FAO) has also warned of serious threats to the livelihoods and food security of millions. The U.N. has started a $460 million appeal for aid on Aug. 11 and the U.S. has pledged $55 million in assistance. The U.K. allocated 16.8 million pounds ($26 million) and earmarked up to 31.3 million pounds for relief aid

Facts about Pakistan's key crops after floods

Massive floods in Pakistan that killed up to 1,600 people also destroyed crops over an estimated area of more than 1.6 million acres (647,497 hectares), farmers and industry officials say. The government says exact damage to crops is yet to be assessed. More damage is expected as the floods head southward. Following are some facts about the main crops. WHEAT STOCKS AND PROSPECTS FOR EXPORT Wheat stocks soared this year after a bumper crop of 23.86 million tonnes in 2009/10, and a carryover of 4.2 million tonnes from the previous crop when Pakistan harvested 24 million tonnes. In April, the government said after setting aside 1 million tonnes for strategic reserves, it still had a 2 million tonnes surplus which would be exported. But it had held back because of low prices in the international market before a recent rally. The floods have damaged up to 600,000 tonnes of wheat stocks, according to initial estimates. Traders say the country, Asia's third-largest wheat producer, still has ample stocks for export. Food ministry officials said this month wheat export was still under consideration, but the government was unlikely to make a decision until it had a complete assessment about the losses and prospects of the next crop. Pakistan banned wheat exports in 2007 because of shortages and high prices in the domestic market. COTTON IMPORTS TO GO UP Pakistan in April hoped to produce 14 million bales of cotton in the 2010/11 season, compared with about 12.7 million bales the previous financial year (July-June), when the country had to import about 2 million bales. This target is unachieveable now. The floods have damaged up to 2 million bales over an area of 700,000 acres (283,279 hectares), and traders say Pakistan will have to import up to 3 million bales to make up for the shortfall. A Pakistani cotton bale weighs 170 kg. Traders said buying will be mainly from the United States and India. Despite being the world's fourth biggest cotton producer, Pakistan annually imports between 1.5 million and 2 million bales to feed its textile industry. SUGAR DAMAGE BEING ASSESSED, IMPORTS LIKELY Pakistan has made a series of purchases in the international market this year following estimates its 2009/10 crop has produced little more than 3 million tonnes of white sugar against an annual demand of 4.2 million tonnes. Pakistan this month bought a total of 525,000 tonnes of sugar in two separate contracts. The next crop, due in November, was expected to produce about 3.8 million tonnes of white sugar before the floods struck. A farmer association official said last week the output of refined sugar would fall by 500,000 tonnes. A Food Ministry official said the extent of damage to the crop was still being assessed and it was centred in a relatively small area of about 100,000 acres (40,468 hectare) -- meaning less damage than the above estimate. Millers say Pakistan will need to import only if production falls below 3.6 million tonnes. SMALLER SURPLUS FOR RICE EXPORTS The floods have affected the rice crop over an estimated area of about 200,000 acres (80,937 hectare), which means an expected loss of about 200,000 tonnes of milled rice. A rice industry trader said the loss could be up to 15 percent of the total output target of 6 million tonnes the government had set for this year. Less output means Pakistan will have a smaller surplus for exports. Pakistan had a bumper crop of 6.7 million tonnes of milled rice in 2009/10 and exported about 4.5 million tonnes, traders say. But a U.S. Department of Agriculture attache in Pakistan said in a report last week that the country exported 3.75 million tonnes of rice in 2009/10. Attache reports are not official USDA data.Harvest of non-basmati rice begins in late September and the basmati harvest a month later.

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.

Pakistani growers worried over TCP rice sale

Growers have shown their reservations over Trading Corporation of Pakistan’s tenders for rice sale in the local market saying it would have bad impact over paddy prices in next season. “TCP should export rice instead of offloading the commodity in the local market, which brings down the rates causing losses to the growers,” Basmati Growers Association President Hamid Malhi said talking to The News on Wednesday. “Whenever rice prices stabilise in the local market, TCP issues sale tender,” Malhi said pointing towards two TCP tenders issued last week for the local sale or export of around 2,500 tons of Irri-6 rice and 25,000 tons of Basmati. TCP has mentioned that Basmati as well as Irri-6 would be available for both local sale and export but the growers have objected. “They have saved their skin by mentioning export in it,” Malhi said. “They are least bothered about the domestic market.” Sindh Balochistan Rice Millers Association, President, Arif Hussain Mahesar, said the TCP tender would not affect the Irri-6 market owing to small quantity, but Basmati market would suffer a glut of the commodity. The growers have already sold their paddy but millers and traders with grain stocks would suffer a plunge in rice rates. Rice Exporters Association of Pakistan Chairman Malik Jahangir said, “TCP’s rice is bad in quality and nobody is willing to eat it.” He said because of the poor quality of its rice, REAP was not participating in the tender. He said the corporation has failed to sell its rice in last two tenders. “If it was good in quality, it would have been taken earlier.” REAP purchased more than 70 percent rice lying with PASSCO, he said, but TCP’s was too bad to eat. Pakistan had a seven million tons bumper crop of rice last year and 6.6 million tonnes this year. TCP purchased 75,000 tonnes of basmati rice last year and 50,000 this year. Export of Irri-6 rice has been increased but basmati remains its level. Hamid Malhi said that early this year the ECC already approved export of basmati lying with the TCP, but no action was taken on its decision. Government has announced support price of Rs1,250 per 40-kg paddy but the growers received only Rs750 from the millers and traders, Malhi said. Though growers have sold their paddy to the millers but the impact of this year’s low rates would affect the prices next year, as lot of grain would be available in the market. Traders would also be affected from dampened prices.

Malaysia to import more rice from Pakistan

Malaysia is expected to register a four- fold increase in the import of Pakistani rice this year, says the Commercial Counsellor at the Pakistan High Commission in Kuala Lumpur, Wijiuallah Kundi. In a statement here today, he said Padiberas Nasional Bhd (BERNAS) and its group of companies, have been actively engaging Pakistan to bring about the increase. The move is in line with the objective of diversifying Malaysia's import base for rice and minimise the dependence on imports from Thailand and Vietnam. Wijiuallah said Malaysia's rice imports from Thailand and Vietnam made up 45.91 per cent and 34.5 per cent, respectively. "Currently, Pakistan is the third biggest exporter of rice to Malaysia. But this is only 4.1 per cent of the total rice imports," he added. The rice products from Pakistan are Basmati rice including Super, Shaheen, Kernal, NIAB, IRRI-9, IRRI – 6, broken rice, rice in the husk, paddy husked or brown rice, both semi-milled or wholly milled. In 2008, Pakistan's total rice exports to Malaysia was valued at RM110.97 million

Global Rice Trade Likely 30 Mln Tons In 2010, Up 6%

The global trade in rice will likely rise 6% this year, to a three-year high of 30
million metric tons, the International Grains Council said.
The trade is expected to be higher than the five-year average due to a rebound in
shipments to Asia, the council said in a recent report.
Deliveries to Far East Asia are forecast to rise 20%, to 8.1 million tons, due to
strong imports by Bangladesh and the Philippines.
Bangladesh is forecast to increase imports to 700,000 tons this year from 145,000
tons in 2009 due to reduced production and increased consumption, the IGC said.
In the Philippines, heightened worries about domestic supplies following crop
damage due to two typhoons in quick succession last year prompted the National Food
Authority, or NFA, to purchase 1.82 million tons late last year for 2010 delivery.
With the government expecting to buy more, imports by the Philippines are forecast
to rise 34%, to 2.6 million tons, in 2010, the IGC said. The NFA was recently
given approval to import more than 3 million tons if necessary, to compensate for
any weather-related crop losses.
Imports by Indonesia, a major buyer in recent years, are forecast to be unchanged
at 300,000 tons in 2010, while shipments to Malaysia will also remain steady, at
900,000 tons.
Due to a rise in shipments by Thailand and Pakistan, total exports by the five
leading exporters of rice including Vietnam, India and the U.S. is projected to rise
7% by 24 million tons.
Government procurement and strong international competition resulted in a
steep decline in Thailand’s rice exports last year. The government is now offering 2.0
million tons of old crop stocks to exporters in 2010 but an auction to sell 375,000
tons in January was unsuccessful.
If price quotations are competitive, Thailand’s rice exports may rise to 10 million
tons this year and drag down shipments from neighboring Vietnam.
Despite large sales to the Philippines, rice exports by Vietnam are likely to fall
8% to 5.5 million tons. Due to restrictions in exports by India, shipments by neighboring Pakistan are likely to rise to 3.3 million tons from 2.7 million tons.
There was a marked increase in South America’s rice exports in 2009 to 2.1 million
tons but these levels are unlikely to be sustained this year and may decline to 1.8
million tons, though they will still be above the historical average, the council said.

Sugar-rice swap being explored

Pakistan is entering the age of modern barter system as it is negotiating with the Philippines to swap sugar with rice.

If a deal between the two countries strikes, the modern barter systems will allow Pakistan and the Philippines to bypass money systems for commodities.

Pakistan and the Philippines have surplus rice and sugar, respectively, and talks were currently under way to barter the two items to avert any shortfall in the two countries, said Federal Minister for Food, Agriculture and Cooperatives Nazar Mohammad Gondal here on Monday.

The Philippines, which is one of the leading rice-consuming countries in Asia and the Pacific, is learnt to have shown interest to buy rice from Pakistan. Pakistan has surplus stocks of rice, but it is deficient in sugar.

The Economic Coordination Committee of the Cabinet at its recent meeting had discussed the disposal of super basmati rice from 2008-09 crop lying in Passco storage houses and approved export of rice to the Middle East, Iran, Europe and other markets officially.

Shortage of sugar in Pakistan has nearly doubled its price in the open market. While the commodity was available in the market at Rs65 to Rs70 per kilogram, state-controlled Utility Stores Corporation was selling sugar at Rs38 per kg. However to rationalize the price of sugar, the government raised the price of sugar from Rs38 per kg to Rs45 per kg.

Barter system still exists and some 50 per cent of all production and transactions take place outside official money-based GNP-measured sectors of the world’s economies.

A UN report had estimated bartered production at $16 trillion– simply missing from global GDP figures.

Pak challenges India's Super Basmati claim

The Indian and Pakistani commerce ministers might come out on Wednesday with a positive statement on the long-pending joint Geographical Indications(GI) on Basmati but a notice from Islamabad to New Delhi on registering Super Basmati has already spiked the mood against such a move.

The notice sent to the Indian government, confirmed by sources in the commerce ministry, comes in the wake of India registering Super Basmati variety in 2006 for export.

Pakistan believes India's registration of the variety could hit its international market. Pakistan exports close to 800,000 tonnes of the variety annually.

But Indian groups contend that the registration of Super Basmati came as a retaliatory move when Pakistan in negotiations with EU registered the right in 2004 to export Pusa Basmati — a variety known to be widespread in India.

The Indian government's reciprocal action came within two weeks of the Pakistani move. Sources said that the Indian right over Super was bound to stand any legal challenge that Pakistan might put up in pursuance of the notice.

"We registered Super as a Indian variety only after research done by Punjab Agricultural University (PAU) confirmed that the Super variety was the same as a Indian variety traded traditionally in the country as Shabnam or Sikandar generic names. This study had been confirmed in 2003," sources told TOI.

They emphasised that despite the PAU study being available with India, the government did not move on the issue till Pakistan went ahead and registered the Pusa variety as theirs. Officially though, sources said, the issue came up for discussion during the commerce secretary level talks on Tuesday and the two countries seemed to have agreed to work together. A joint statement is expected on Wednesday sources said.

Sources in the commerce ministry raise doubt about how India would progress on the GI issue in the wake of the legal notice even though Pakistan is keen to move on both fronts — attack the Super Basmati registration and look at the possibility of a joint GI.

"It's a rather contradictory move on Pakistan's part. It will be difficult to move on the GI issue without resolving the legal conundrum on Super Basmati," sources in commerce ministry told.

The joint GI has been lying on the backburner for long with trading lobbies in India and Pakistan at loggerheads over basmati trade issues, as TOI had reported earlier. Within India, the agriculture and commerce ministries too have too been playing different tunes on the basmati issue.

Sources say that the key trouble with defining a GI for Basmati is the way Basmati is defined. Tweaking the Basmati definition one way or the other could end up with gains or losses not only for traders but also farmers across the country growing different traditional or evolved varieties of the aromatic rice.

Russia hints at lifting ban on Pakistani rice

Russia has hinted at lifting the import ban on Pakistani rice and mangoes as a formal notification is likely to be issued during the visit of a Pakistani delegation to Russia in the second week of August.

Floods cause damage to rice crop in Sindh

There are chances of further increase in prices of all varieties of rice in the coming weeks after it was officially confirmed that monsoon rains had damaged the crop severely in Sindh, sources told Dawn on Wednesday.

The data collected by Sindh government and sent to the federal ministry of food, agriculture and livestock (Minfal) revealed that the damage to the crops caused by floods had brought down production by 200,000 tons in the province.

Sources said the Minfal had expressed its concerns over such huge damages to the crop in Sindh. They said the crop had also been damaged in Balochistan.

Floods inflict heavy loss on rice crop

Pre-monsoon and fresh spells of heavy downpour in the main rice-growing areas of Sindh are estimated to have damaged nearly 20 per cent of the standing crop, while in three districts of Balochistan, reports could not be compiled as flood waters have not yet receded, says a report compiled by the Ministry of Food, Agriculture and Livestock (MINFAL).

The damage due to floods caused by heavy rains is also expected to hamper rice production by nearly 100,000 tonnes this year and the estimate might swell, said Ali Baksh, a resident of Jaffarababad.

Residents of the three districts of Balochistan rely heavily on the rice crop as a staple food and fodder, said Bakhsh, depicting a grim situation of the area. The three districts namely Naseerabad, Jaffarabad and Jhalmagsi in Balochistan are solely farming districts and their people poverty-ridden. These people are now left high and dry at the mercy of the elements and concerned authorities for food, shelter and medical relief and their miseries presently cannot be comprehended, said Baksh.

Rice in Sindh was targeted to be sown on 1.4 million acres while in the three districts of Balochistan, it was to be sown on half a million acres; overall targeted cultivation was 2.5 million hectares with an estimated harvest of 5.7 million tons for 2007-08.

Indo-Pak basmati registration to take time

India is unlikely to find it easy clinching registration of geographical indication (GI) for basmati rice jointly with Pakistan, even if the process were to be speeded up.

Irked over a type of basmati called Super Basmati being exported by India to the EU, Pakistan’s Basmati Growers’ Association, has reportedly sought permission from Pakistan’s commerce minister Humayun Akhtar Khan to file a separate petition in New Delhi challenging the relevant notification of the Indian commerce department. That notification was issued on May 24, 2006 and approves the export of the Super basmati from India.

The alleged loss to Pakistani exports is $300-$500 million as a result of Indian traders exporting the Super variety. In December 2005, the Pakistani BGA applied for GI registration of Basmati to the trade mark registrar at Karachi.

However, according to reports in the Pakistani media, Rice Exporters’ Association of Pakistan opposed this, making India hopeful of a joint Indo-Pak registration of GI. In May, Commerce minister Kamal Nath asked Pakistan to speed up the process of joint filing for a GI for basmati.

He then wrote to the Pakistan government, seeking information from the neighbouring country on the locations to register the GI application, stating that India had already chosen members of the joint taskforce, while Pakistan had yet to do that. Pakistan has not enacted a legislation on GI, he pointed out.

The implication of Mr Nath’s letter was that Pakistan was dragging its feet on the issue because its basmati exports world-wide had taken a drubbing from India, particularly in the EU, due to its superior quality.

Pakistan falls 3% short of rice export target

Pakistan fell short to achieve the rice export target for the fiscal year 2006-07 due to the low production and non-availability of surplus quantity for exports.

The export target for 2006-07 was fixed at $1.27 billion but only $1.2 billion was achieved reflecting a loss of $7 million. While the export target for 2005-06 was $1 billion and $1.5 billion was achieved, resulting in an increase of $5 million.

During the fiscal year 2006-07 the export of rice went down by 4,00,000 tonnes in terms of quantity and 3 percent value wise, Chairman of the Rice Exporters Association of Pakistan (REAP) Aziz Maniya said. Mr Maniya said that the next rice export fiscal year target would be easily achieved if the weather and water supply conditions remain feasible.

In the last fiscal year around 2.3 million tonnes of rice was exported. The short crop is the main reason for not achieving the target, although the exporters have still managed to emerge good results, he added. Mr Mania said it is expected that for this year the government will set a target of $1.35 as compared to $1.27 billion target of 2006-2007.

According to Chairman REAP, this year the average price of basmati is $1,100 per tonne, rising from $650 per ton last year from November 2006. Similarly, IRRI-6 is exported at $300 per tonne which was $215 per tonne at the start of the season,” he added.

This year a large quantity of Basmati rice was exported in UAE and Iran while IRRI-6 was exported in African countries, as exports this year have increased to Iran, both through formal and informal channels, he added.

This year a six percent shortage has been recorded in rice production globally. Since November 2006, the international prices of Basmati rice have surged by 35 to 40 percent due to crop shortage in leading rice producing countries. As in this season China, Thailand, Vietnam, India and Sri Lanka have reported crop shortage particularly in coarse rice.

Due to the increase in demand the price is rapidly rising in the international market and Pakistani exporters are exporting those stocks as well that should have been sold locally that is why the local prices are rising.

Previously price of Super Basmati was Rs 40 per kg, Irri-9 from Rs 25 to Rs 30 and Irri-6 from Rs 18 to Rs 20. Currently Super Basmati is being sold at Rs 65-75 per kg, Irri-9 from Rs 35 to Rs 42 and Irri-6 for Rs 24-30.

In East European region Indian has a very strong hold and to compete them Rice Exporters Association of Pakistan (REAP) has to work hard as in the international market every year demand of Basmati rice is rapidly increasing. Some rice traders dealing in domestic grain market complained that unchecked exports of rice had created shortage in the domestic market, and this had pushed up prices. Currently, all rice exports are handled by the private sector, which exported more than three million tonnes because of lower production in India, Pakistan’s main competitor.

Basmati price increase in the Gulf

For some time UAE importers of rice have been seeking retail price increases to reflect increases in wholesale prices.

The Ministry of Economy said it would not condone any substantial increases as it was an important part of most people's diet. According to importers, the price of Basmati rice from India and Pakistan was becoming prohibitive and as such importers were threatening to stop bringing in this most popular of all varieties of rice.

Pakistan's Rice Production Seen Falling 2 PCT Next Fiscal Yr

Pakistan's rice production in the next financial year 2007-08 has been estimated to fall 2 per cent to 5.4 million tons from 5.5 million in the current fiscal year.

The Food & Agriculture Ministry has taken several incentives to boost rice production in the country especially Basmati.

There is rising demand for Basmati across the world for its fragrance and good taste.

The area under Basmati cultivation increased by 1489.0 million hectares with 2666.40 million tons production estimated this year as compared to total area of 1474.24 million hectare and total production of 2493 million tons in fiscal 2006-07.

Per hectare yield rose from 2209kg per hectare to 2442kg per hectare.