NEW YORK, Nov 14: Pakistan is poised to overtake the United States as the world’s third largest rice exporter, a US government report said on Thursday.

The report said that unfettered by government intervention or an export ban, Pakistan rice exports surged in 2007-08 to an estimated at 4.2 million tons.

Access to last season’s strong international prices encouraged farmers to move additional planting area to rice and as a result 2008-09 production is estimated to reach a record 6.3 million tons.

In light of this year’s bumper crop and the softening of international prices, the government of Pakistan has announced its intention to purchase one million tons of paddy to support local prices.

The report, however, said that traders were wary of any government intervention in this highly successful market led by private sector and has responded cautiously to the government’s rice procurement scheme.