The change of around $80 to $100 per tonne in the export price of rice, customers mainly from Europe have redirected their import orders of around 40,000 tonnes rice to India.
70 % of the global buyers from EU countries have averted orders from Pakistan to the Indian millers mostly due to price alteration. Now Pakistani rice export price to Dubai is flying at around $1,250 per ton whereas India trades her non-basmati rice variety at $1,150 per ton. Pakistan basmati rice export price is at around $700 per tonne while Indian variety of Pusa, which is copy of basmati rice, is effortlessly accessible for $625 per tonne.
The government instead of supporting the exporters is planning to obstruct in rice market through procurement, causing further drop in rice export and removing the country of precious foreign exchange.
Rice export was nearly still due to price rise of rice in Pakistan as government did not offer any aid to farmers on agriculture inputs. On the other hand, subsidy from Indian government to farmers as well as rice exporters, have extremely disturbed the rice export of Pakistan, causing decline of more than 30 per cent.
The subsidy on rice by Indian government in the name of food security is presently aching openly millions of Pakistani growers who are previously facing several encounters due to past two successive floods in Pakistan.
The govt, instead of disturbing market phenomena by landing rice, should equalize farmers by supplying them free seeds, free pesticides, free water, free fertilizer, free electricity and other amenities. In year 2008 PASSCO had achieved 200,000 M/Tons rice with prices challenging than the existing market and even after 6 years they could not positioned of these pillories and ultimately management had to confront up to Rs24 billion loss.
Authorities supposed that the government participation in such commercial pursuits would be destructive to the private sector who had capitalized billion of rupees to shape a foundation and human resources, rotating the country into the 2nd largest foreign exchange recipient across rice export.
The connection also lamented that currently, the rice exporters are using stockrooms of Trade Corporation of Pakistan and Pakistan Agricultural Storage & Services Corporation Ltd, keeping more than 200,000 tons rice there for export perseverance and if this capacity is removed, the exporters will be incompetent to acquire the service, as they cannot position alternate procedure at such a massive level in very small duration.