Export of Pakistani rice, both basmati and coarse rice will be increased by at least 10 per cent in quantity and 15 to 20 per cent by value this fiscal, an official from Rice Exporter Association of Pakistan said Thursday adding that the international prices of basmati rice have surged by 35 to 40 per cent since November 2006, due to crop shortage in leading rice producing countries.

The average price of basmati is $ 850 PMT now, rising from $ 650 PMT last year from November 2006. Similarly, 30 per cent broken IRRI-6 is exported at $ 265 PMT. This was $ 215 PMT at the start of the season. The 5 per cent broken is about $ 300 PMT. This was 250 PMT in November.

 China, Thailand, Vietnam, India and Sri Lanka have reported crop shortage this season particularly in coarse rice. This will benefit Pakistan where rice production is sufficient enough to export higher quantity of this popular staple crop. The country is also expected to meet the rice export rice target of $ 1.3 billion by end of June 30, 2007.

According to the provisional data compiled by Federal Bureau of Statistics, the export value of basmati rice has increased by 20 per cent while the quantity surged by 16.22 per cent between July-March 2007. The official noted that Sri Lanka can also reduce or eliminate duty on the import of coarse rice for month or two due to crop shortage, encouraging Pakistani exporters.

Sri Lanka is a good market for Pakistani rice exporters for two reasons. First, due to proximity and second, because of a good banking system which ensures a faster payment. It may noted that in 2000-2001, Sri Lanka had lowered duties and imported 200,000 MT of coarse rice due to crop failure.