Pakistan aims to export 5 million tonnes of Rice amid India ban

"Pakistan expected a bumper crop of rice this year," says the REAP chief.

The country exported 3.7 million tons of rice worth $2.14 billion last fiscal year.

Kewlani says Pakistan can export 5 million tons of rice this year.

KARACHI: Pakistan's Rice Exports are estimated to increase in the current fiscal year due to India's ban on rice exports and exploration of new markets in Russia and Mexico, the Rice Exporters Association of Pakistan (REAP) said, according to The News.

REAP Chairman Chela Ram Kewlani said Pakistan exported 3.7 million tonnes of rice worth $2.14 billion in the previous fiscal year despite facing various challenges.

"Despite devastating floods, crop failure and many other problems, we exported 3.7 million tons worth $2.14 billion," he said.

The REAP chief was optimistic about Pakistan achieving its target of 5 million tons of rice worth $3 billion in the current fiscal year that began in July.

"India's ban on rice exports will have a significant impact on global rice trade dynamics. This will provide a good opportunity for Pakistan to fill the supply gap and expand its market share in countries with large rice purchases."

India, the world's largest rice exporter, last month banned exports of non-basmati rice to shore up domestic supplies amid rising food inflation. Kewlani said Pakistan could benefit from higher export volumes and increased revenue as a result of the ban.

"Overall, the ban may create a favorable business environment for Pakistan's rice exports." Industry officials said Pakistani basmati rice prices soared to $500 a tonne in the international market, up nearly $100 from a month ago, as demand surged following India's export ban.

Pakistani rice is enjoying a premium for its superior quality and could rise further to $600 a tonne in the coming months, one trader said. "Pakistan has a unique opportunity to increase its rice exports and earn valuable foreign exchange as India has banned rice exports due to drought." he said.

Pakistan is the world's fourth largest exporter of rice after India, Thailand and Vietnam. Kewlani said Pakistan's non-basmati rice, which sold for $450 a tonne before the ban, also jumped to $500 a tonne as buyers switched to alternative sources.

He also said that Russia has registered 15 more Pakistani companies to export rice to the country and 12 more are in the process of registration. "This opportunity will also be beneficial for generating additional foreign exchange for our country as Russia is a large and potential market for Pakistan's rice."

Kewlani added that the recent visit by Mexican technical experts went well and they were satisfied with the adherence to standard operating procedures by Pakistani rice exporters. He hoped that Mexico would soon lift the ban on Pakistani rice and resume imports.

He said Pakistan is expecting a rice crop this year with an annual crop of around 9 million tonnes. "We hope to easily reach our target of 5 million tons worth $3 billion this year."