NEW DELHI, Dec 2: European traders have bought 80,000 tons of basmati rice from Pakistan in the last 10 to 15 days, sidestepping main producer India’s new season crop because of higher prices, a senior industry official said on Tuesday.

Gurnam Arora, joint managing director of Kohinoor Foods, and former president of the All-India Rice Exporters Association, told Reuters that Indian exporters lost out largely because of an export duty of $200 a ton imposed in April.

He said Indian basmati rice was quoting between $1,400 and $1,500 per ton, about $400 to $500 above Pakistani prices.

“Traditionally, our rice is usually priced about $200 more than the Pakistani rice,” he said.

“We have requested the government to remove the export tax as Pakistan is eating into our share.” “There is no sense in this duty,” Arora said, adding that Indian rice stocks were comfortable.

India had also banned the export of non-basmati rice in April.

The country exported about 1.5 million tons of basmati rice in the year to March 31, 2008, out of total exports of 5.5 million tons of rice. Arora said there was no clarity yet on whether the government will scrap the export duty, despite trade requests.

“There is going to be a shortfall of 30 per cent in exports, if the export tax does not go immediately,” he said.

Analysts say Pakistan, the world’s fifth-largest rice exporter, has become more price competitive than India.

“Most people are holding back purchases (of basmati from India), as they are saying that they will buy once the duty is scrapped,” Arora said.

“Only limited quantities are being bought from India by some rich western nations,” he said, adding last week’s attacks in Mumbai could put traders off visiting India.

IRAQ: Iraq’s Grain Board has purchased 30,000 tons of Pakistani long-grain rice at $385 per ton FOB basis for January shipment, a trade source said on Tuesday. Volumes in Iraq’s wheat and rice tenders are viewed as nominal and it regularly buys more than originally sought.

Iraq had also bought another 30,000 tons of Vietnamese rice at $411 per ton FOB.

Both sales were bought during a tender for a nominal 30,000 tons of rice that closed on Sunday.

Reuters reported on Sunday that Iraq had bought up to 80,000 tons of rice and opted for cheaper Pakistani and Vietnamese rice, where offers ranged from $385 to $412 a ton FOB, while rejecting Thai rice bids of at least $100 a ton higher as too expensive.Iraq’s last major purchase of rice in the international market was on Nov 16. when it bought for the first time in nearly five months 60,000 tons of Vietnamese rice at $420 FOB.

—Reuters