ISLAMABAD, Nov 13: The country's rice exports are likely to be boosted by falling domestic prices because of an expected bumper harvest in the 2006-07 crop year.

According to a private TV channel the rice output will be increased to 5.6 million tons from the previous year's harvest of 5.4 million tons after an increase in the area under cultivation and a high yield.

“We have harvested around 5.3 million tons and hopefully the crop will be over 5.6 million tons by the end of the season,” said a senior official at the ministry of food and agriculture.

Pakistan's eight-month long rice crop runs from April to November and the official said a final estimate on the crop size would be available in December. Annual domestic consumption is about 2.3 million tons.

Rice production has risen in the past few years backed by a government

drive to boost output and as more farmers switch over to rice also because of better availability of irrigation water.

Production this season could surpass the target of 5.6 million tons because of better availability of water following winter rains in February, the heaviest in Pakistan for 30 years, the official said.

“Better availability of water has also nominally increased the cultivation area this year to 2.6 million hectares (6.424 million acres), and has also improved yield per acre,” the official said.

Abdul Majid, a major rice exporter, said the country planned to increase rice exports in the fiscal year 2006-07 despite stiff competition from Southeast Asia.

“Our estimate suggests that we hopefully will end the season by exporting up to $1.3 billion worth of rice,” he said.

Pakistan sold a record 2.9 million tons of rice last year, when rice-export revenues exceeded $1.1 billion, beating the previous high of $933 million in 2004-05.

Majid said the international demand was on the rise, especially for top quality basmati rice, while local rates were coming down.

The main buyers of Pakistani rice were African countries, Sri Lanka and Afghanistan.

He said the Irri-6 crop from the southern province of Sindh was already in the market, while basmati would be ready for harvest later this week.—APP