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Indonesia eager to buy 1m tons of rice from Pakistan

BHarwana

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MULTAN:
Indonesian Ambassador to Pakistan Iwan Suyudhie Amri has said that Jakarta is working to establish a mutually acceptable mechanism for the import of one million tons of rice from Pakistan by 2019.

Speaking to members of the Multan Chamber of Commerce and Industry (MCCI) on Friday, Amri invited local manufacturers, exporters and industrialists to take part in the 33rd Trade Expo in Indonesia, which would be held from October 24 to 28 for promoting business ventures.

"We have decided to grant free 30-day visa to traders and visitors from 174 countries; registered buyers will be welcomed at Jakarta’s Soekarno-Hatta Airport,” he said.

Tracing bilateral relations, he said the two countries have had friendly and cordial ties since the inception. “However, now we should make serious efforts to translate these relations into greater economic partnership,” he stressed.

“The volume of bilateral trade is $2.18 billion which is far less than the existing potential.” He was of the view that exports from Pakistan should increase by a considerable degree.

He praised the improved law and order situation in Pakistan, saying it would definitely impact exports to Indonesia positively.

Pointing to the China-Pakistan Economic Corridor (CPEC), he said it would attract foreign investment and also benefit all regional countries.

“Indonesia is a country with a huge population of 250 million; our domestic market is very strong which has provided us a solid base for speedy economic growth.”

Regarding halal food, Amri said Pakistan was quickly adopting halal food certification which would help raise its halal product exports to Indonesia.

Earlier in his welcome address, MCCI President Malik Asrar Ahmed Awan highlighted the importance of the region, saying Multan contributed 96% to total production in Punjab and 70% to the country’s production.

“It has 47% share in wheat harvest, 23% in sugarcane, 50% in livestock and also produces good-quality mangoes,” he said.

Awan pointed out that trade between Pakistan and the Southeast Asian nation had been growing strongly for the last couple of years.

The volume of bilateral trade grew from $700 million in 2010 to $2.3 billion in 2016, up 229%.

“Pakistan is not ready to explore Far East markets including Indonesia. Unless our exporters go for innovation and branding, the situation is not going to change,” said Awan.

https://tribune.com.pk/story/1813939/2/
 
A single contract worth billions of dollars. This is great news and a big score for rice industry.
I know Pak produces a lot of rice(among other things) but does it produce enough to export one million ton to just a single country AFTER satisfying domestic needs and exports to other countries?

It's not gonna be a case of Pak exporting one million tons to Indonesia and fulfilling other export orders...only to have a shortage at home...driving prices up...and then to meet that demand, rice is imported and sold to Pakistani public at that higher price?
 
I know Pak produces a lot of rice(among other things) but does it produce enough to export one million ton to just a single country AFTER satisfying domestic needs and exports to other countries?

It's not gonna be a case of Pak exporting one million tons to Indonesia and fulfilling other export orders...only to have a shortage at home...driving prices up...and then to meet that demand, rice is imported and sold to Pakistani public at that higher price?
Yes we do an we have even more supply for more buyers so our rice production is not an issue.
 
Yes we do an we have even more supply for more buyers so our rice production is not an issue.

I am not that sure of it. Do you have some link to back it up? Because the thing is rice requires farm preparation differently as compared to other plantations. First we have a water crises, secondly the soil conditions requires a lot of water, thirdly we have specific cycles in which plantations are done, e.g; wheat takes 6-7 months, if you add in corn, cotton, etc. So many other crops, it's just doesn't seem logically possible. But may be I am wrong, would greatly appreciate published data regarding it.
 
This is a massive Deal in agricultural sector .....massive deal specially since rice will be needed yearly
 
I know Pak produces a lot of rice(among other things) but does it produce enough to export one million ton to just a single country AFTER satisfying domestic needs and exports to other countries?

It's not gonna be a case of Pak exporting one million tons to Indonesia and fulfilling other export orders...only to have a shortage at home...driving prices up...and then to meet that demand, rice is imported and sold to Pakistani public at that higher price?

As far I know, Pakistan produces around 7 million tonnes of rice per year and consumes 3 million tonnes as rice is not our staple diet. 4 million tonnes are targeted for export(basmati and non basmati).


https://en.wikipedia.org/wiki/Rice_production_in_Pakistan
https://www.dawn.com/news/1417344
 
Usually we imported some rice from Thailand. I think it might be the first time if we we really imported rice from Pakistan.
 
Usually we imported some rice from Thailand. I think it might be the first time if we we really imported rice from Pakistan.
Currently Pakistani rice is cheap and of better quality than rest of the world.
Indonesia has been making many visits to rice growing area to make the purchase.
 
Rice production is not issue. We have enough surplus. Yes it’s good to see increase in exports for rice. We have best quality rice.
 
How much foreign exchange can we hope to get from 1m tons of rice? I don't think the number will be more than $1-2 billion which is pocket change compared to the amount of money we need.



We need to rapidly move towards export of manufactured products, there isn't enough money in agriculture export.
 
How much foreign exchange can we hope to get from 1m tons of rice? I don't think the number will be more than $1-2 billion which is pocket change compared to the amount of money we need.



We need to rapidly move towards export of manufactured products, there isn't enough money in agriculture export.

There is good money in agricultural exports and these are few big deals will fill our pockets for the next year. Pakistan is going in surplus in many food products and they can give huge support to our economy. Plus this year cotton production and textile will give more return than ever because fasilabad is now getting cheap gas from next month.
 
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