KARACHI, Nov 19: The country could only export around 40,000 tons from new crop Irri-6 rice against 120,000 tons exported in the corresponding period last year, official sources said. The new crop season has started from Nov 1, 2001.

Due to a steep fall in export of Irri-6 rice, that was exported at an average price of $177 per ton, the country has earned $7.8 million only as against last year’s of around $21 million.

The Rice Exporters’ Association of Pakistan (REAP) sources said that the main factor for slow exports is highly volatile dollar/rupee parity as well as War Risk Premium (WRP).

“How could we compete in the world market if we have to include $5 per ton as WRP in our cost,” said the chairman REAP Abdul Rahim Janoo.

First of all, rice exporters are unable to enter into fresh deals with their foreign buyers because of rapid fluctuation in dollar/rupee value and secondly demand from African countries has also diminished.

Last week two shipload of around 33,000 tons Irri-6 rice and around 7,000 tons in containers were exported fetching around $7.8 million. Another vessel is due this week to load around 13,000 to 14,000 tons of Irri-6 rice.

The export of Irri-6 rice is very slow compared to last year and if the situation does not improve, growers or millers would ultimately suffer, another exporter said.

However, export of Basmati rice is reported to be fairly higher than last year. From July 1, 2001, up to Nov 10, 2001 around 150,000 tons have been exported.

Unlike Irri-6 rice whose exports are seasonal and are restricted to around six to seven months cycle, the Basmati rice exports could be carried out whole year.

In coarse rice exports, countries like Vietnam, Thailand and China are our main competitors and are known as ‘rice bowl.’ However, in Basmati rice our only competitor is India as this variety of rice is not grown anywhere else in the world.

The convener of small and medium sized rice exporters Zulfikar Thaver told Dawn that depressed demand for Irri-6 rice from African countries is also causing difficulty in our exports.

He said most of these countries import coarse rice on grants and aids received from oil rich Middle Eastern countries. But somewhat the flow of such funds have either decreased or have stopped altogether.

Consequently, he said, much of exports of Irri-6 to these African countries have slowed down and exporters are unable to find new markets.