ISLAMABAD, Aug 26: Pakistan, the world’s fifth largest rice exporter, has removed a minimum export price (MEP) on non-basmati rice after expectations of a bumper crop, a top industry official said on Tuesday.

“We have received a letter from the government on Aug 23 to the effect that the MEP for rice other than basmati has been removed on all varieties, including Irri-6,” said Azhar Akhtar, chairman of the Rice Exporters Association of Pakistan (Reap).

“MEP is still there on two varieties of basmati – super basmati and normal basmati,” said Akhtar, whose association handles the bulk of the country’s rice exports.

A senior food ministry official Qadir Bux Baloch earlier told Reuters that a decision had been taken to remove the MEP on non-basmati rice, which had been imposed this year to increase earnings and check an increased outflow of non-basmati varieties.

The MEP for Irri-6, a non-basmati variety and the country’s cheapest rice, mainly exported to East and West African countries, was set at $750 per ton.

A top industry official said last week that after the lifting of MEP exporters were likely to offer Irri-6 at between $400 and $450 per ton free-on-board (FoB) at the Karachi Port.

Pakistan’s rice output is expected to rise at least 10 per cent to over 6 million tons in 2008-09 on a larger planted area, officials and growers said.

But exporters estimate rice output at 7 million tons, up from 5.5 million a year ago, and say rice exports could exceed 4 million tons during this financial year.

“If there are no restrictions, we can export 2 million tons of rice between July and December,” said Akhtar, who demanded the removal of all curbs, including MEP on basmati rice to get maximum benefit from the “bumper crop.” Pakistan’s eight-month-long rice season runs from April to November. Final estimates of the crop could be made in late December.

Rice accounts for about 8 per cent of Pakistani exports and 1.2 per cent of gross domestic product. Annual domestic consumption of rice is about 2.3 million tons.—Reuters