KARACHI, Aug 30: The country is expected to harvest a bumper paddy crop of around 5.6 million tons this season (2006-07). Similarly, record export earnings of over $1.3 billion are also being forecast owing to high prices of rice being presently quoted in the world market.

For the first time rice exports last season (2005-06) crossed $1 billion mark by fetching better price through value-addition and opening up of new markets.

However, exporters are confident that rice exports this season would be fetching even higher foreign exchange earnings owing to better price of rice prevailing in the world market.

It is expected that the production of basmati would be around 2 million tons and other varieties, including Irri-6 would be close to 3.6 million tons this season.

After exporting around 3.6 million tons of coarse rice, the Indian government has imposed a ban on rice exports in order to meet domestic consumption shortfall being expected in view of lesser wheat production.

A leading exporter and chairman Rice Exporters Association of Pakistan (Reap) Haji Abdul Majid told Dawn that presently Vietnamese coarse rice was being quoted at around $250 per ton in the world market. Similarly, Thai and Indian rice are being quoted at around $260 and $238 per ton, respectively.

Looking at these figures, he said, Pakistani coarse rice (Irri-6), which normally fetches about 12 per cent higher price than the Indian coarse rice, would be sold at around $240 per ton this season. Last season, he said exporters on an average earned $215 per ton and exported around 2.8 million tons of Irri-6 rice.

It is being estimated that Irri-6 production in lower Sindh may be little less than last year as water to the paddy was delayed owing to the shortage.

However, growers are optimistic that this loss could be covered by better production and price for D-98 variety, which is close to basmati rice in aroma as well as in quality.

According to the growers D-98 rice variety gives better production even if it gets water at later stages of its cultivation and it also takes higher inputs than Irri-6. But the D-98 variety is much superior than Irri-6 and also fetches better price in the world market.

Furthermore, it is being reported that Irri-6 production in Punjab is better this year where water was available during early stages of cultivation and two districts--Okara and Dipalpur--where Irri-6 is mostly cultivated, are likely to produce around 0.250 million tons against 0.1 million tons last year.

Some growers in Punjab prefer to cultivate course rice as it has early maturing period compared to basmati rice, which needs much more time. Irri-6 normally matures in three months and is ready for harvesting at the same time.

Against this basmati rice matures for harvesting by end December each year. Consequently, those growers, who like to go for other crops such as wheat or sugarcane, prefer to cultivate Irri-6 rice.

Similarly, export of basmati rice is also expected to increase as there is more demand from Iran and Afghanistan. After meeting the domestic consumption of basmati rice the country exports around 0.9 million tons at an average rate of $575 per ton freight onboard (fob) Karachi.

According to domestic market reports Irri-6 is presently sold at around Rs1,350 per 100-kg, basmati (super) at Rs2,900 per 100-kg and D-98 at around Rs2,400 per 100-kg.

However, exporters are suggesting to the government to set-up warehouses along the border with Iran and Afghanistan in order to curb smuggling of such essential commodity like rice. This will not only encourage official trade but also help bring in revenue to the national exchequer of all the three trading countries.

Exporters expect more demand for rice from Iran, which also caters to the needs of Central Asian countries and wants to maintain stocks up to 0.5 million tons. There is a rising demand for parboil rice from Afghanistan and traders normally lift small quantities in order to avoid checking at posts on the border, they said.