KARACHI, March 28: Pakistan rice exports have not been hampered by the Iraq war so far, but exporters feared substantial losses in business if the war lasted for several more weeks, industry officials said on Friday.

“Overall, exports are not affected as yet, but a prolonged war could damage our markets,” Rahim Janoo, chairman of the Rice Exporters Association of Pakistan, told Reuters.

“The war region is a big market for Pakistani rice. We will face substantial business losses if the war continues for another three or four weeks.”

US-led forces invaded Iraq just more than a week ago and financial markets have shuddered on concern that the war would be longer than first thought.

Pakistani exporters said the war had already cut some orders for low-volume Basmati rice from the Middle East Gulf and Saudi Arabia. In addition, some shipping companies charge “war risk surcharge” on cargoes for Kuwait and some Saudi Arabian ports, adding to costs and the pressure already on Pakistan prices, Janoo said.

Some shipments left for Europe, East Africa, the Gulf and southeast Asia after the war began last week, but “the pace of the shipments has been slowed down”, he said.

A few shipping companies are already charging $100 to $150 extra on 25-foot containers bound for the region close to the war zone, he said.

“A lengthy conflict could lead to additional war-related levies,” he said.—Reuters