Rice exports plunge despite subsidies

ISLAMABAD: Rice exports declined by 35.38 per cent in February despite government subsidies, prompting exporters to question the effectiveness of the support scheme.

Exporters said the subsidy programme had pushed up domestic prices, making Pakistani rice less competitive in international markets and undermining the intended benefit of the government’s cash support.

The government has announced a 3 per cent duty drawback on local taxes and levies for coarse rice and a 9pc duty drawback for basmati exports. Under the scheme, the government has allocated approximately Rs15 billion to provide rebates on local taxes and levies for rice exporters.

Official figures compiled by the Pakistan Bureau of Statistics show that basmati rice exports declined by 19.21pc in value and recorded negative growth of 27.98pc in quantity in February.

Stakeholders cite high domestic prices and hoarding as key culprits

Stakeholders cite high domestic prices and hoarding as key culprits

The export of coarse rice also registered a decline of 42.50pc in value and 32.94pc in quantity during the month under review. The figures indicate that the subsidy scheme introduced by the Ministry of........

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