Traders eye 30pc increase in rice exports to Iran

KARACHI: Pakistani traders eye an increase of at least 30 percent in export of aromatic Basmati rice to Iran and a delegation will visit the country later this month to seek more opportunities following the lifting of international sanctions, industry officials said on Friday.

Iran, one of the world’s biggest rice importers, annually imports more than two billion dollars of the commodity.  Pakistan has a modicum share in the neighbouring market. The country exported 2,234 tons of rice to Iran in the last fiscal year, fetching around $1.32 million.  

“We see rice exports to up 20 to 30 percent,” Chairman Muhammad Shafique of the Rice Exporters Association (Reap) told The News. “The efforts are underway from both the sides to resolve the issues,” Shafique said. 

The resolution of the issues will help Pakistan break a long-standing monopoly of Indian aromatic rice in Iran, he added. “We are eager to regain our lost share of basmati rice to India.”   In the past few years, India has flooded the Iranian market with its basmati rice at knockdown prices.     

Reap will take a 26-meber delegation, comprising of rice traders to Iran on April 22 to discuss the issues related to the condition of good manufacturing practices certification with Iranian authorities.

Shafique said talks will also cover a subject, such as opening of letter of credit in Euro.   The delegation will also meet the office bearers of the Iran’s main business association.   Rice exporters met with the Iranian traders when Iranian President Hassan Rouhani visited Islamabad on March 25.

Exporters are anxiously waiting for the banks to accept letter of credits from Iranian buyers and the facility of discounting of bills drawn on Iranian buyers. The State Bank of Pakistan has already advised Pakistani banks to take necessary measures for establishing correspondent banking relationship with Iranian banks.

“At present, all the Pakistani banks are conducting their own analysis and due diligence on Iranian banks and are in touch with the SBP for the guidance,” said a senior banker at the National Bank of Pakistan.