Rice exports: No demand for surplus production

Prices low in global market; India giving huge subsidy.

ISLAMABAD: Following the troubles encountered by wheat growers, rice farmers and exporters are also facing problems in disposing of around three million tons of surplus stock of last year because of lower prices in the international market.

At present, the country has two million tons of surplus stock of basmati and one million tons of coarse rice. Weak demand in the international market is causing trouble for the exporters and growers.



During 2014-15, total rice production of the country was 6.720 million tons over an area of 2.76 million acres.

“Fifty per cent of this production is the domestic requirement and the remaining is surplus,” said a senior officer in the Ministry of National Food Security and Research.

He said weak demand in the international market was due to comparatively cheaper global prices, particularly in India, where the rate was very low. Chawla Ram, a representative of the Rice Exporters Association, said both the exporters and growers were in financial trouble because the government was not giving subsidy to facilitate exports.

On the other hand, the Indian government is giving a huge subsidy to its agriculture sector, which is why the country still competes in the international market.

Chawla said they had written to Finance Minister Ishaq Dar, asking him to help the growers and exporters, but the government did not take any interest.

“The government has given subsidy on the export of wheat, but the rice industry is not being treated the same way,” he said.

Published in The Express Tribune, April 3^rd,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.