Pakistan May Tax Exports To Curb Inflation

In a move that would certainly add to the global anxiety over record food prices and thinning rice supplies, Pakistan is considering to double its wheat imports and more importantly slap a tax on rice exports to rein in inflation.

With inflation at a 13-year high, Islamabad could join the growing list of governments seeking to tame rising prices by discouraging overseas sales. Rice, a high-value cash crop, accounts for about 8 % of Pakistani exports and 1.2 % of gross domestic product.

Surging demand has helped more than double the price of 100 percent parboiled Thai rice , considered a global benchmark, so far this year, while U.S. rough rice futures for July hit a record high of $22.20 earlier on Tuesday.