ISLAMABAD, June 21: Pakistan is likely to encourage rice imports for market stabilisation owing to lower than projected domestic produce this year, it is learnt.

If approved, rice import will perhaps be the first time in the country’s history as Pakistan is a well known rice exporter in the international market.

There will be no restriction on rice exports, however, to safeguard Pakistan’s brand name.

Secretary food, agriculture and livestock Mohammad Zia-ur-Rehman, however, said no such proposal had come to his knowledge so far.

Market sources said the domestic rice prices had gone up by about 70 per cent over last year due to a lower than projected rice output.

The government had set a target of 5.7 million tons of rice production for the current year, but final crop estimates put the total produce at 5.4 million tons, a shortfall of 300,000 tons.

Short production and increased exports have increased retail prices from Rs35-38 to more than Rs55 per kg.

Currently, all rice exports are handled by the private sector who exported more than three million tons because of lower production in India, Pakistan’s main competitor.

It was not yet clear which rice variety could be imported, but market sources anticipate lower quality rice imports that could affect domestic rates. These sources said exports this year have increased to Iran, both through formal and informal channels.