Karachi: Rice exports are expected to drop by 40 percent this year due to severe damage to the rice crop in Sindh due to floods, which will result in a foreign exchange loss of over $500 million to Pakistan.
People associated with the rice industry say that neglecting this major exporter of Pakistan will affect the volume of exports as well as the food security situation in the country in the coming months.
Last year, Pakistan produced about 8 million tons of rice, of which 4.8 million tons were exported, earning $2.5 billion in foreign exchange.
However, rice exports in the current year are expected to remain below $2 billion due to the destruction of the rice crop in Sindh, as well as high energy costs, gas shortages and uncertainty over the current exchange rate.
Sindh’s share in the total rice production in the country is more than 50%. Similarly, exports from the province are about 70%.
While most basmati rice in Punjab is consumed locally, with local consumption increasing year on year, Ari-6 rice from Sindh is mostly exported and consumed by local feed mills.
According to Rice Exporters Association (REAP) Chairman Chela Ram Keulani, “Pakistan’s rice industry is currently going through the worst crisis in history. On the one hand, the effects of climate change, rains and floods have adversely affected the production, due to which more than 40% of the rice cultivated in Sindh has been lost. Major rice growing areas of Mehar, Larkana, Juhi, Khairpur Nathan Shah and Dadu are still under water.
“On the other hand, the government’s neglect of the rice sector has made it difficult for this important export industry to survive,” lamented Kiwalani.
Rice exporters are also bearing the brunt of volatile exchange rates. According to Finance Minister Ishaq Dar, the possibility of the dollar falling to Rs 200 has stopped exporters from buying rice at higher prices locally and booking export orders.
The energy crisis is also affecting the rice industry. Rice mills, which had invested heavily in gas-fired generators, are now facing shutdowns as gas supply to the mills has been cut off. More than half of the rice mills in Karachi, and more than six hundred mills across Sindh, have closed,” said the REAP chairman.
Dr. Leela Ram, a rice miller from Badin, said, “While rice cultivation methods are being modernized in Punjab as well as research on seeds, there is no focus on rice in Sindh. “
