BEIJING, Oct 29: Pakistan has rich potential to grab a reasonable share in the Chinese market for export of its quality rice, said a member of Pakistani delegation attending an international business conference here.
“We are working out a strategy to compete with rice exporters from Thailand and Vietnam by presenting better quality long-grain rice on relatively lesser price,” he said while talking to APP.
Pakistani rice exporters will be newcomers in the Chinese market and will need to work hard, he said, adding that “we are expecting genuine traders to come forward to take due advantage. China is the world’s biggest rice consumer and has resorted to imports in recent years to meet growing demand at home where grain prices have swayed widely.”
Chinese analysts and industry officials attending the conference said although China might be importing rice in the next few years, it would mainly be for a few high premium grades.
“The government will do everything possible to give incentives to farmers to grow more rice,” said Ning Gaoning, Chairman of China National Cereals, Oils and Foodstuffs Corporation, known as COFCO, the country’s top grain trader.
Officials and analysts said while China’s rice consumption is likely to rise in the coming years, it might hit its peak in 2010.
Although urban residents consume more rice and people in the north are increasingly shifting to rice from wheat, rural consumption of rice is declining as people in the countryside can now afford more vegetables or meat, they said.
They estimated China’s paddy consumption to be about 178.8 million tonnes by 2020, against expected output of 183 million, leaving China with an export surplus of 3.3 million tonnes.
“China will be one of the major rice exporters in the world, with versatile varieties like Indica, Japonica, Parboiled rice,” said Yang Hong, rice manager of state-owned company COFCO.
Pakistan’s rice exports might climb to 2.5 million tons in the 2005/2006 marketing year, with 150,000 tons sold for November and December shipment this week, a senior official from SGS Group said.
Anjum Varsy, director of operations for SGS in Pakistan, told reporters the country was hoping to ship that amount, including 1 million tons of Basmati rice, before March. The recent deals were done at about $225 a ton, free-on-board. —APP
