Pakistan: Govt. Intervention Hurting Exports

Rice exporters from Pakistan have projected that the country could export up to 4 million MT of rice in the 2008/09 financial year but for the government intervention is making rice more expensive and that is hurting overseas sales.

According to official data, rice exports from Pakistan rose 4.6 % to 1.1 million MT in the first six months of the financial year to December, compared with 1.05 million MT in the same period last year. But exports fell more than 50 % in January from the same month in 2008 following a government decision to buy rice from traders and enter the export market.

With a bumper crop expected of more than 6.5 million MT from 5.50 million MT the previous year, the government decision to buy rice and paddy was aimed at helping farmers and maintaining stability in domestic prices.