LAHORE: Pakistan's rice exports showed an overall 31 percent decline in the first two months (July & August 2020) of the current fiscal year as compared to corresponding period year due to least interest of buyers.
During August 2020, Basmati export from Pakistan came down by 46% from 66,961 tons in August 2019 to 35,917 tons in August 2020. Non-Basmati export came down by 35% from 192,167 tons in August 2019 to 131,876 tons in August 2020. In two months of July/August 2020, a massive decrease of 31% has been recorded (433,357 tons from 624,266 tons), said Hamid Malik, an agriculture expert with in-depth knowledge of rice value chain while talking to Business Recorder here on Monday.
He said for rice exports it is a worrisome start in this financial year. For Non-Basmati less export from Pakistan is due to short of exportable rice in July/August this year and higher prices as compared to India, he observed.
"We expect a much better export of Non-Basmati in September 2020 onwards due to the arrival of new hybrid rice on the start of September. Pakistan got more competitive than India in September 2020 and logistics problems of slow loading and COVID-19 at main Indian port of Kakinada. The slow pace of Pakistan Basmati export trend will continue through September-October this year due to higher prices at the mill-gate level in Pakistan as compared to India," he concluded.
Rice Exporters Association of Pakistan (REAP) Chairman, Shahjahan Malik while commenting on this situation termed it a post-COVID-19 lull, he claimed there was panic buying during the COVID-19 by the buyers due to food security apprehensions. However, he hoped that the situation would improve in the next few months and Pakistan at the end of the current financial year will again be making the export of around US$2.5 billion.
Lahore Chamber of Commerce & Industry (LCCI) Senior Vice President, Ali Hussam Asghar while talking to this scribe said that his own business of rice export had seen no activity during this period. Again, he said, it is because the buyers over-estimated the consumption during the lockdown period around the world as they have sufficient stocks, they may go for buying again in the next few months.
Copyright Business Recorder, 2020
Comments
Comments are closed.