Rice

KARACHI: Pakistan is estimated to export 4.5 million tons of rice, fetching

approximately $2.0 billion for the year 2016/17 as experts pin hopes on
higher hybrid production as well as pro-agriculture and pro-export measures
announced by the government.
The office of Global Analysis USDA has raised Pakistans exports forecast by
0.1 million tons to 4.5 million tons on a stronger pace of trade.
USDA projects around 20 percent larger purchases by Saudi Arabia and
Azerbaijan from Pakistan. Reportedly, Saudi Arabia would import around 1.6
million tons of rice during the period.
Global Analysis USDA maintains Pakistans rice export quotes at $410/ton.
Arif Mahesar, an office bearer of Pakistan Rice Growers Association, said
hybrid varieties were being grown in many areas and production would be
better.
Pakistans rice exports have crossed 4.0 million ton mark in the past, and
there is sufficient demand in the international market. If the countrys
production during the year comes to 7.0 million tons, rice exports will surely
surge to 4.5 million tons.
Mahesar, however is wary of the lower commodity prices, which are
compelling the growers to opt for alternate crops. A number of rice growers
in Sindh have already switched to sugarcane due to low rice prices. But, the
hybrid seed is available in the local market, which enables higher yields on
smaller land.
Mahesar said that there were some concerns pertaining to hybrid produce,
but the positive point is that China, which is a big market, likes hybrid
produce. According to Pakistan Bureau of Statistics (PBS), the country
exported 3.946 million tons of rice fetching $1.7 billion during July-May 201516.
For 2016/17, USDA Grain Report forecasts global production at a new record,
primarily due to a larger crop in the United States, while global trade is

forecast lower, with reduced imports and consumption in Bangladesh, Iran,

and Nigeria.
Ahsan Mehanti, Director at Arif Habib Commodities, said government had
announced several incentives for the promotion of agriculture as well as
exports, which would be reflected in overall agro-based production.
However, the higher production of any commodity cannot guarantee higher
exports. If rice production numbers grow northwards globally, and
competitors offer better rates, Pakistans exports might take a hit.
Mehanti said Middle East and Africa were the primary markets for Pakistani
rice, and Thailand, Vietnam, and India were competing producers. Indias
rice export quotes were lower than Pakistan last year, and concerned
authorities should focus on better marketing also, Mehanti noted.