Rice Exporters Aim to Obtain Industry Status and Expand Global Markets for Higher Exports
Published on: December 7, 2023.
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Rice Exporters in Pakistan Call for Industry Status to Increase Export Potential
Rice exporters in Pakistan are urging the government to grant them industry status in order to expand their export potential from $2.5 billion to $4.5 billion. Despite recent floods negatively impacting the crop, the Rice Exporters Association of Pakistan (REAP) has successfully achieved its annual target of $2.5 billion in rice exports. This marks a significant achievement considering that rice exports were only worth $300 million 15 years ago.
REAP Chairman Chela Ram Kelwani emphasized the need for the government to recognize the rice export sector as an industry. This designation would provide the sector with access to various incentives and facilities. Kelwani highlighted that rice export is currently the third largest sector in Pakistan’s economy and with government support, it has the potential to become the largest. To achieve this, Kelwani stressed the importance of increasing rice production and finding new markets.
The sector faces several hurdles including high tariffs, port congestion, high bank interest rates, and expensive electricity costs, which hinder its growth. Overcoming these challenges with government assistance is crucial for the industry’s success.
Kelwani also highlighted the global acclaim for Pakistan’s basmati rice, renowned for its quality and aroma. It is highly sought after in Southeast Asia, Europe, and Central Asia. However, the cultivation areas in Punjab, the hub of basmati production, are at risk of being taken over by housing societies. Kelwani urged the government to protect these areas and encourage farmers to increase their output.
In addition, Pakistan has emerged victorious in a legal battle with India in the European market. India can no longer sell Pakistani rice under its own branding, providing an opportunity for Pakistan to strengthen its market presence.
REAP leader Haseeb Ali Khan emphasized the potential for the rice export sector to become Pakistan’s largest industry if the government provides full support. REAP is actively utilizing technology and modern methods to enhance the quality and quantity of rice exports. They are also exploring new markets in Africa and Latin America, where there is a high demand for basmati rice.
Source: [The News](https://www.thenews.com.pk)
