40% fall in rice exports likely

Sindh produces over 50% with exports of around 70%, but floods, neglect put industry in danger

KARACHI:

Due to severe damage caused to the rice crop by the floods in Sindh, rice exports are expected to decline by 40% this year, resulting in Pakistan losing over $500 million in foreign exchange.

People associated with the rice industry have stated that neglect of this major export earner of Pakistan will affect the food security situation in the country along with export volumes in the coming months.

Last year, Pakistan produced around eight million tonnes of rice, of which 4.8 million tonnes were exported for which foreign exchange of $2.5 billion was obtained.

Rice exports in the current year, however, are expected to be less than $2 billion due to the destruction caused to the rice crop in Sindh coupled with high energy costs, gas shortages and the prevailing exchange rate uncertainty.

Sindh’s share in the total production of rice in the country is over 50%; similarly, exports from the province stand at around 70%.

While most of the basmati rice grown in Punjab is used locally, with local consumption increasing year-on-year, Irri-6 rice which is from Sindh is mostly exported and used by local feed mills.

According to the Rice Exporters Association (REAP) Chairman, Chela Ram Kewlani, “Pakistan’s rice industry is currently undergoing the worst crisis in history. On the one hand, the effects of climate change, rains and floods have adversely affected production, due to which over 40% of the rice cultivated in Sindh has been lost; with the main rice growing areas of Mehar, Larkana, Johi, Khairpur Nathan Shah and Dadu still inundated.”

“On the other hand, the government’s neglect of the rice sector has made it more difficult for this important export-oriented industry to survive,” lamented Kewlani.

The rice exporters are also bearing the burden of the unstable exchange rate. According to Finance Minister Ishaq Dar, the possibility of the dollar falling to Rs200 has prevented exporters from buying rice at high prices locally and booking export orders.

“The energy crisis is also affecting the rice industry. Rice mills, which had invested heavily in gas-powered generators, are now facing closure as the supply of gas to mills has been stopped. More than half of the rice mills in Karachi, and over six hundred mills across Sindh have shut down,” said the REAP chairman.

A rice miller from Badin, Dr Leela Raam said, “While research is being conducted on seeds, along with modernising the methods of rice cultivation, in Punjab, no attention is being paid to rice in Sindh.”

Published in The Express Tribune, November 24^th, 2022.

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