Rice traders in UAE are hoping that there would be a tremendous incline in rice exports from Pak, however the pressure on rice supply will not yet released. The company obtains rice majorly from India, Pak and minorly from other sources and after branding sells in the local market. This hope is extended till November of this year. Mohammed Azar Akhtar, who is the Chairman of the Rice Exporters Association of Pakistan (REAP) showed faith in the expected growth of exports from$2.5 billion to$ 4 billion. As Pakistani ministry has recently simplified the process for super basmati and basmati rice and imposed only a minimum export price of $1300 and $1500 respectively. Indian rice exports have benefited a lot to Pakistani exporters and they have entered into new markets but an international rice price fall might worry them due to electricity shortage in their industry areas.
There is cut throat competition and price of super basmati and basmati is declining as the matter of fact. Previously the world rice production was 645 million tons in year 2007, according to the stats of IRRI, International Rice Research Institute. Now nearly 114 countries cultivate paddy and more than 50 countries yield 100,000 tons or more.
Around ninety percent of the total yield of paddy is grown by Asian peasants and the biggest producers are china and India, even though Pakistan supply has hopes of boom but still it will not ease the pressure on commodity as the share of Pakistan is not major in the world market.
Asian farmers produce about 90 per cent of the total, with two countries – China and India – growing more than half the total crop. Even though the Pakistan supply is hoped to grow in coming November but the pressure on the commodity will continue because of Pakistan’s small share in the total production, rice traders said.