KARACHI, Aug 29: Libya has shown keen interest in purchase of around 50,000 tons of Irri-6 from Pakistan. In this regard a delegation from Tripoli is expected soon to inspect rice processing and quarantine facilities, official sources disclosed on Tuesday.

The development has been described a breakthrough. Libya has not purchased rice from Pakistan before and this deal, if materialised, could open up a new market for Pakistani rice.

The sources indicated that the deal would be carried out at government-to-government level and it could be used as a swap against loans taken by Pakistan from Libya.

However, official sources did not disclose the amount of loans against which the rice deal was taking place but confirmed that Libya had shown interest in purchase of rice (Irri-6) from Pakistan.There had been great demand for Pakistani basmati rice in Arab countries of the Middle East and this would be for the first time that an Arab (African) nation purchases Irri-6 rice from Pakistan.

According to market sources presently world market rates of Irri-6 are being quoted at around $240 per ton and once the deal was through it would fetch around $120 million for the country. However, if the deal was made against outstanding loans this amount may be swapped.

The sources said that a lot of enthusiasm was being shown by official circles with regard to this deal as it was being looked upon as an opportunity for capturing a new market of a sizeable quantity for export of rice.

According to some estimates the country would have a bumper rice crop this season. It is generally being felt by the private sector that the total production would come to around 5.6 million tons. The country has already managed to cross a billion dollar mark in export of rice during last season.

However, these analysts feel that Irri-6 may be in less production this season due to the late availability of water but are optimistic about the overall cultivation of paddy.

It is being generally felt that the superior quality rice with aroma of E-98 variety, also known to be as good as original basmati, would be in larger quantities in Sindh this season.

The analysts further said that the E-98 variety grew well in less water at its initial stages and could compensate the paddy growers fairly well against the expected loss on account of Irri-6 crop.

They opined that since this variety required more investment towards input cost but was equally poised to fetch higher price in the world market for being of long grain, high quality and also having almost same aroma as of original basmati.

Indian exporters had been exporting this variety in the world market under the name of original basmati and even managed to get high price close to the price of basmati, which ranged from $400 to $700 per ton.