Raza Khan

Exporters fear a decline of 40% in exports of non-basmati rice due to current financial crisis and loss caused to the crop by recent floods in Sindh province. Chela Ram Kewlani, Chairman of Rice Exporters Association of Pakistan (REAP), told WealthPK that a decline of 40% in exports will result in loss of over $500 million.

Kewlani mentioned that apart from loss to crop, devaluation of Pakistani currency and unavailability of dollars were among the reasons for slow rice exports. He said that due to non-availability of dollars, rice millers are unable to import machinery and other equipment required to run their business.

The REAP chairman said Pakistan achieved good exports during fiscal year 2021-2022 as the value surpassed $2.5 billion for the very first time. “However, we might not be able to repeat that performance this year,” he feared.

He mentioned that the effects of climate change, rains and floods have adversely impacted the rice production in Pakistan. He said the government was also not paying enough attention to the rice sector, which is the country’s second largest exported commodity after textiles.

The REAP chairman said that high electricity rate being charged on rice mills compared to other export-oriented sectors was also hurting them as it increases their cost of production. “Higher electricity tariff is making Pakistani exporters uncompetitive in the international market,” he pointed out.

Kewlani said that rice mills were not provided with sufficient gas during winter, which has affected the processing and packaging work. He informed that Pakistan exports 800,000 tons of basmati rice annually.“Pakistan exports 500,000 tons of basmati rice to Middle Eastern countries, and 300,000 tons to European countries,” Kewlani informed.

He said that basmati rice crop was not damaged by floods and exports, and its exports would not decline much, but the crops of non-basmati rice were affected badly.According to Pakistan Bureau of Statistics (PBS), the country’s rice exports declined by 15.82% during the first seven months (July-January) of current fiscal year (2022-23) to $1.083 billion compared to $1.286 billion during the corresponding period of last fiscal year.

Pakistan’s exports of basmati rice declined by 6.48% during the July-January period. However, the exports of non-basmati rice dropped by 19.43% during the same period.In terms of quantity, rice exports dropped by 24.63% during the period under review to 1.944 million tons from 2.580 million tons.

Pakistan’s rice exports increased by 23% during the last fiscal year (2021-22) compared to the previous year. During the last fiscal year, over 4.877 million tons of rice including basmati and non-basmati rice valuing $2.511 billion were exported against the exports of 3.684 million tons worth $2.041 billion in 2020-21.

Credit: Independent News Pakistan-WealthPk