While everybody is complaining about adverse implications of depreciation of the Pakistani rupee against the dollar, rice exporters are celebrating as the sliding rupee has given them back the competitive advantage which they had lost to Indian counterparts.

Local rice exporters are ready to seize the moment as they eye over $2 billion worth of export orders this year after a dismal previous year. In the previous financial year, rice exports fell to $1.7 billion from $2 billion in the preceding year. Falling rupee will make local products cheaper in the international market, hence giving a boost to the country’s exports. Indian rice exporters got an edge last year when they beat Pakistani exporters on the back of depreciating Indian rupee, according to local rice exporters.

“Over 7% slide in the value of rupee against the dollar has increased prospects for local exporters to win back lost international markets,” said Taufeeq Ahmad, a rice exporter and former vice chairman of Rice Exporters Association of Pakistan.

New international rice markets were emerging for the Pakistani-cultivated rice, mainly in Africa. Ahmad said that increased purchasing power in many African nations besides multinational corporations expansions to Africa had resulted in higher demand for Pakistani rice in the continent.

Due to prolonged monsoon season this year water availability was better, which will result in improved per acre rice yield. Per acre yield has been on decline for the last many years, exporters said.

Rice yield has declined to 15 maunds per acre over the last few years in the country, while in India per acre yield had touched 20 maunds attributable to better seeds. One maund is equal to about 38 kilogrammes.

Ahmad went on to say that during the monsoon season, farmers feared that heavy rains will wash away the rice crop, but fortunately the rains proved to be good for the crops. Moreover, prices in both the local and the international markets have remained stable this year. Thus, farmers and exporters are earnings good profits on exports of the crop.

Also highlighting the concern was Haider Ali, another rice exporter, who said that Pakistan was the world’s leading supplier of basmati rice, but in the last few years the country had lost its competitive edge as productivity declined and prices slid.

Pakistan’s traditional export markets for rice include United Arab Emirates, Saudi Arabia, Qatar and Iran.

Exports to regular markets have been on the decline, while exports to emerging markets such as Africa have increased considerably, said Ali. Pakistan is focusing on non-traditional markets for rice exports, he added.