Rice exports to Iran fall 82%, India captures market

[UmarJustice]

Though Iran is under sanctions because of its alleged nuclear programme, basic items like food, medicines and medical services are exempted. Still, rice exporters of Pakistan are feeling the heat, not as a result of the sanctions, but due to absence of facilitation from government departments, say exporters.
A major chunk of rice exports goes to Iran as people there are fond of rice, especially Pakistan’s super basmati that is highly demanded for its taste, aroma and length.
Previously, exporters were selling 45,000 tons of basmati to Iran every month, but shipments have now shrunk to 8,000 tons, a decline of 82%. Exporters blame the absence of a currency swap agreement between the two neighbours for the sharp decline in exports.
Pakistan produces six million tons of rice per year, of which the share of highly aromatic Basmati is two million tons. Rice millers export around $2.5 billion worth of rice annually.
The Rice Exporters Association of Pakistan (REAP) says Iranian importers have started turning to India, taking benefit of currency swap and currency transfer channels under the ‘food versus oil’ regime. “India has snatched our rice market,” a miller commented.
Talking to the media, REAP Vice Chairman Sameeullah criticised the State Bank of Pakistan and related government departments for their failure to announce a clear-cut policy for rice exports to Iran.
“If the government believes that no trade is possible with Iran, it should tell us clearly and at least release the blocked payments for shipments rice exporters have already sent to Iran,” he said.
Sameeullah pointed out that the exporters tried several times to approach the governor and deputy governor of the State Bank, commerce secretary and Trade Development Authority of Pakistan chief executive to resolve the issue and get the payments released, but to no avail.
“If the issue is not resolved, we will start protesting in front of the central bank in Karachi and then take the demonstrations to Lahore,” he said. “We don’t want to knock the doors of higher judiciary, but if no solution is found, they will be our last hope.”

Rice exports to Iran fall 82%, India captures market – The Express Tribune

 

[anilindia]

There are other rice loving country also. Pakistan can try that. Do you have some rice promotion council trpe..

 

[qamar1990]

Though Iran is under sanctions because of its alleged nuclear programme, basic items like food, medicines and medical services are exempted. Still, rice exporters of Pakistan are feeling the heat, not as a result of the sanctions, but due to absence of facilitation from government departments, say exporters.
A major chunk of rice exports goes to Iran as people there are fond of rice, especially Pakistan’s super basmati that is highly demanded for its taste, aroma and length.
Previously, exporters were selling 45,000 tons of basmati to Iran every month, but shipments have now shrunk to 8,000 tons, a decline of 82%. Exporters blame the absence of a currency swap agreement between the two neighbours for the sharp decline in exports.
Pakistan produces six million tons of rice per year, of which the share of highly aromatic Basmati is two million tons. Rice millers export around $2.5 billion worth of rice annually.
The Rice Exporters Association of Pakistan (REAP) says Iranian importers have started turning to India, taking benefit of currency swap and currency transfer channels under the ‘food versus oil’ regime. “India has snatched our rice market,” a miller commented.
Talking to the media, REAP Vice Chairman Sameeullah criticised the State Bank of Pakistan and related government departments for their failure to announce a clear-cut policy for rice exports to Iran.
“If the government believes that no trade is possible with Iran, it should tell us clearly and at least release the blocked payments for shipments rice exporters have already sent to Iran,” he said.
Sameeullah pointed out that the exporters tried several times to approach the governor and deputy governor of the State Bank, commerce secretary and Trade Development Authority of Pakistan chief executive to resolve the issue and get the payments released, but to no avail.
“If the issue is not resolved, we will start protesting in front of the central bank in Karachi and then take the demonstrations to Lahore,” he said. “We don’t want to knock the doors of higher judiciary, but if no solution is found, they will be our last hope.”

Rice exports to Iran fall 82%, India captures market – The Express Tribune

pakistanis should not be allowed to export food till pakistanis themselves are well fed.

There are other rice loving country also. Pakistan can try that. Do you have some rice promotion council trpe..

we have rice loving pakistanis who are hungry so why export it. same goes for india. when the people of these countries cant even sleep on a full stomache the government should be allowing the export of food.

 

[mastaan]

pakistanis should not be allowed to export food till pakistanis themselves are well fed.



we have rice loving pakistanis who are hungry so why export it. same goes for india. when the people of these countries cant even sleep on a full stomache the government should be allowing the export of food.

Everybody who can't afford rice, doesn't need basmati rice, to say the least. In addition, Exports bring in forex, that can be used to create avenues to create jobs and employment (as money is then invested to create more money, thus starting a virtuous cycle). Stopping such virtuous cycles is not the answer: getting efficient by improving productivity and reinvesting forex smartly is!

 

[hankau62]

...... absence of a currency swap agreement between the two neighbours for the sharp decline in exports.

.....criticised the State Bank of Pakistan and related government departments for their failure to announce a clear-cut policy for rice exports to Iran.

The trick india did is that the currency swap is via uco bank. this bank dont have business with foreign banks. so even this bank is sanctioned, the bank will remain operative.

It was an intelligent move (or chanakiya neeti ) by indian policy makers for smooth trading between india & iran.

 

[Xracer]

Good for India keep it up

 

[Ayush]

Good for India keep it up

dont worry,we will.

 

[Infinity]

May be Iranians Love Indian Rice (Basmati) more .........................

 

[Bang Galore]

same goes for india. when the people of these countries cant even sleep on a full stomache the government should be allowing the export of food.

Just read up how much stock the GoI holds, they have no real option but to export rice & wheat.

 

[narcon]

Indian Basmati rice production is 3 times over that of Pakistan. Basmati rice was under attack from Biopiracy. A US company had applied for basmati rice patent in the US, which was fought by India - Pakistan did not join the battle. India won finally.
India-U.S. Fight on Basmati Rice Is Mostly Settled - NYTimes.com

Basmati rice is diabetic friendly:

According to the Canadian Diabetes Association, basmati rice has a "medium" glycemic index (between 56 and 69), thus making it more suitable for diabetics as compared to certain other grains and products made from white flour

THERE ARE TWO FACTORS FOR PAK RICE DOWNFALL HERE:

One is that Pakistani rice is expensive by 15% due to load shedding and subsequent use of generators which run on diesel fuel:

Jawed Ali Ghori Chairman REAP informed due to increased tariffs of electricity and gas, millers have to run their mills on diesel generators, which was multiplying their operational cost and for this reason prices of Basmati rice have increased by 15 percent.

The other is India undercutting Pakistan on prices:

Pakistan has exported 239,764 metric tonnes of Basmati rice valuing $233 million during July 2012 to December 2012, whereas for the same period in last year, we had exported 506,904 metric tonnes valuing $440 million. He claimed during the last six months, Pakistani rice was not getting good price from Iranian importers and for the same reason exports to Iran via Quetta Border has shown 66 percent decline. In addition tender of rice from Qatar government has been awarded to India due to their lower prices. He was worried Pakistan has not getting new orders from Oman, Abu Dhabi and Doha.

Daily Times - Leading News Resource of Pakistan

It is worth mentioning here that REAP in a recent statement has claimed that traditionally the price of Indian basmati and other rice varieties used to be at least $100-300/MT higher than Pakistani rice varieties, but after the arrival of a new crop in Oct-Nov 2011; India taking advantage of its huge stocks, bumper crop and devaluation of its rupee by 15-20 per cent reduced their prices by 20-30 per cent and now they are selling $100-300/MT cheaper than Pakistani basmati rice and other varieties, such as Kianat (1121). Recently, the government of India has reduced MEP on basmati rice from $900-700/MT, which is far below the Pakistani basmati rice prices of $900-1,100/MT. Earlier, Indian government had lifted the ban on export of non-basmati rice and allowed export of two million tonnes of non-basmati rice. Consequently, Pakistan has lost its brown rice market of EU of nearly 170,000 tonnes to India and is facing great difficulties for export of its basmati rice to Middle East and other countries of the world.

 

[Koovie]

we have rice loving pakistanis who are hungry so why export it. same goes for india. when the people of these countries cant even sleep on a full stomache the government should be allowing the export of food.

We have millions of tons rotting inside inadequate storing facilities here every year.... exporting it is far more beneficial than leaving it to insects and bacteria

 

[Hellraiser007]

Guys in India is making profit with the rotten rice and wheat by making beer and other alcoholic beverages

 

[Bobby]

Open business with India...we will buy your all Basmati rice and later sell the same rice to Iran

 

[Xracer]

dont worry,we will.

Bro thoray say Chawal Pakistan bi Beaj do i want to taste indian Basmati

 

[JanjaWeed]

Indian rice exporters must be rubbing their hands with glee & hoping that the western sanctions on Iran continues to remain.