Chairman of Rice Exporter Association of Pakistan(REAP) said that Pakistan may not be able to achieve its export volume goal of 3.8 million tons during FY 2014-15 (July-June) after the demand from China and Malaysia has been decline.
China has signed a deal with Thailand to provide 2 million tones of its stockpiled rice after improved relation between two nations during 5th Greater Mekong Sub region (GMS) summit organized for 19-20 December 2014.
He said that the export may reach around 3.5 million tons including 600,000 tons of basmati rice.
Currently Pakistan’s 5% broken rice is quoted at $355 per ton much lower than that of Vietnam’s 5% broken rice which is quoted at $370 per ton,Thai is at $400 per ton and India’s at $395 per ton.
The demand for Pakistan’s rice has declined after Thailand has planned to dispose off 17 million tons of its rice stock under rice pledging scheme within coming two years. Of total 17 million tons of rice, the government has decided to dispose 10 million in this year only and also the revival of Myanmar into rice market .
Besides Pakistan, other major rice exporters of world are facing a lower rice export demand this year.
UN’s Food and Agricultural Organization (FAO) data states that Pakistan’s Rice Export has declined by 1% from December 2014 and by 37% from year ago. Pakistan Rice Export Value in December 2014 was $885 per ton (PKR 88,350 per ton) , in January 2015 was $876 per ton (PKR 88,305 per ton).