The rice exports will cross the magic figure of US one billion dollar this year. The Rice Exporters Association of Pakistan (Reap) has, however, set a target of US 1.3 billion dollars for the year 2005-06. According to figures available here, rice exports had already crossed US 933 million dollars during the year ended on June 30, resulting in 22 percent value-addition in rice exports last year as compared to the year 2003-04.
Total rice exports stood at 2,745,259 metric tonnes worth 933.223 million dollars (Rs 55.436 billion) during 2004-05 as compared to 1,822,739 tonnes of the rice worth 634.457 million dollars (Rs 36.535 billion) a year earlier (2003-04).
The official figures, announced by the Federal Bureau of Statistics, said the contribution of Basmati rice in country exports was 921,694 tonnes, worth 491.080 million dollars as compared to 816,339 tonnes (worth 421.748 million dollars) exported in 2003-04.
The export of non-Basmati rice stood at 1,823,565 tonnes worth 442.143 million dollars (Rs 26,276 billion) in 2004-05 as compared with 1,006,400 tonnes worth 212,709 million dollars (Rs 12.251 billion) in the year 2003-04.
The rice exporters believed that Pakistan would become member of one billion club, as they had set the target of 1.1 billion dollars of rice exports during the year 2005-06.
Reap Chairman Barrister Syed Najaf Hussain Shah, while talking to Business Recorder on Tuesday said the local rice exporters had achieved a record figure of export in 2004-05. "We have set the figure of 1.3 billion of rice export during the year 2005-06, while 20 percent value-addition is expected this year", he added.
He said that after signing protocol with China, they were talking with Mexico regarding rice export. After signing an agreement with Mexico, the South American market would be opened for Pakistani rice, he added.
He said that after an increase in rateof Export Re-Finance upto nine percent announced by the State Bank of Pakistan, local rice exporters would find it difficult to compete in the international market.
Reap former chairman Abdul Rahim Janoo told Business Recorder that Pakistan's total rice production was around 4.6 million tonnes, while half of its total production was consumed locally. In the year 2004-05, Pakistan got record production and also exported record quantity of rice in one year in the history of the country, he said.
"We got 22 percent value-addition in rice export, which is also a record in our history", Janoo said, adding they would achieve their target of 1.1 billion dollars this year with the value-addition of 10 percent.
He said the increase in production was not expected this year due to various issues. The land of cultivation of rice would be same this year as the government was paying its attention over the other crops and increase in yield of the rice crop was not possible due to old seeds, he added.
However, he said local rice exporters had explored new markets including China, which was the biggest market for Pakistani rice and a huge quantity of rice was expected to be exported to that neighbouring country this year.
Janoo demanded of the government to abolish five-percent duty on machinery. He also demanded that the government should allow importing such machinery from India, which was comparatively cheaper than other countries. He said those steps would help regarding value-addition of rice for export.
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