LAHORE, May 28: Pakistan may soon be importing rice for the first time in its history to meet its domestic demand as prices in the local market have risen by over 50 per cent in the country, thanks mainly to its smuggling to Iran and export to the UAE.
According to market analysts, Iran, out of fear of American food embargo, has stored more than three years of its consumption. It the crisis situation, Iran has paid almost double the price and hoarded massive quantities.
Most of the rice is either being officially exported to Iran or being smuggled.
According to market insiders, around 10,000 tons of rice is being smuggled to Iran currently. This is over and above normal export of rice.
Another factor, which has created massive market for Pakistani Super basmati rice abroad, is very energetic campaign by the Pakistani traders about its origin and effort to alienate India as far as export of Super basmati was concerned.
The Indian basmati rice is now considered by most of the consumers abroad as fake variety of the same. This campaign has also created additional demand abroad for aromatic rice from Pakistan.
Pakistan may soon be importing rice from Thailand in order to control domestic prices, which have gone up to Rs1,200 per maund to Rs1,800 during the last five months, says Asif Malik, a rice trader.
Similarly, retail prices have increased from Rs40 per kg in December last to Rs60 per kg. The trouble with rice market is that export and smuggling are going on unchecked, which may drive prices further up, he feared.
If prices continue to go up as being noticed for the last few weeks, noises for imports or ban on export might only grow, he said.
One should not forget that rice is also a staple food in the country and needed for food security in the country, he said.
The government may move to check smuggling, rather than banning export, says Afzal Bajwa -- a rice miller. It is under active pressure to do so. So far, it has resisted doing so on the pressure of farmers, who are getting abnormally high price of rice. Drawing the comparison, he said increase of Rs2 per kg in the price of pulses has forced the government to ban export of pulses. In case of rice, the increase is 50 to 75 per cent.
“The government should not try to tinker with rice trade at any cost," says Hamid Malhi of the Basmati Growers Association.
The farmers are getting better price of rice at last and should not be used as an excuse to penalise farmers. The government has never facilitated farmers. Now, if they are getting some relief because of market forces, it should not intervene to deprive farmers of their rightful income. It can find ways to facilitate urban consumers, but its effort should not be at the cost of farmers, he insisted.
