ISLAMABAD: In a significant move to support Pakistani rice exporters, the government has removed the cap of Minimum Export Price (MEP) on rice.
The decision was taken in the light of recent decision of the Indian government to remove MEP on the export of rice, which supposedly will hurt Pakistani rice export in different countries.
During the early two months (July-August) 2024-25, substantial growth was witnessed in rice export.
Pakistan removes floor price for rice exports
According to the Commerce Ministry, Federal Minister for Commerce Jam Kamal Khan directed the immediate withdrawal of the Minimum Export Price on rice, a measure that had been set in place in 2023.
The Ministry of Commerce has also issued a notification following the request of the Rice Exporters Association of Pakistan (REAP).
The Commerce Ministry believes that the MEP was initially introduced last year in response to rising global rice prices and a ban imposed by India on rice exports. However, with the recent decline in international rice prices and India lifting its export ban, the MEP has become an obstacle for Pakistani rice exporters to remain competitive in global markets.
The Commerce Ministry has claimed that by removing the MEP, Pakistani rice exporters will now be able to better compete in international tenders, enhancing their ability to secure large contracts. The decision is expected to play a key role in boosting Pakistan’s rice exports, with industry experts projecting that it could help achieve export revenue of up to $5 billion in the current financial year.
The Commerce Ministry has further stated that REAP has praised the decision, stating that Jam Kamal Khan’s intervention will prove instrumental in revitalizing the rice export sector and ensuring Pakistan’s strong presence in the global rice trade.
Copyright Business Recorder, 2024
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