Pakistan Gains Edge Over Indian Basmati Exports

India's basmati rice exports are likely to fall lower sharply as an export tax makes the grain more costly while rival Pakistan, gains from a steep fall in its currency

Pakistan's total rice output is expected to rise at least 10 % to more than 6 million MT in the 2008/09 fiscal year on a larger planted area, officials and growers say.

According to Abdul Baseer, vice chairman of the Rice Exporters' Association of Pakistan, "Rice exports have become attractive due to the rupee's devaluation, and we have seen exports going up".

The Pakistani rupee has lost more than 20 % against the dollar this year due to a deteriorating balance-of-payments position. It traded at a record low of 77.55 rupees per dollar in early trade on Wednesday.