Business

Indian exporters fear Pakistan could seize control of basmati rice market

Published

1 year ago

Farwa

India maintains $1,200 a ton MEP for basmati rice.
Millers fear decision will hamper overseas sales.
India and Pakistan are the only growers of basmati rice.

NEW DEHLI: Indian exporters have criticised their government for maintaining the current floor price for basmati rice, saying the move will allow Pakistan to capture the market.

India and Pakistan are the only growers of basmati rice. New Delhi exports more than 4 million metric tons of basmati – the premium long-grain variety famed for its aroma – to countries such as Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates and the United States.

New Delhi set a floor price, or minimum export price (MEP), of $1,200 a ton in August. It was expected to cut this MEP but the government on Saturday said it would maintain the floor price until further notice.

“Farmers find themselves in a frustrating predicament,” said a leading exporter who asked not to be named.

“We are empowering Pakistan to seize control of the basmati rice market in the short term.”

India, the world’s biggest rice exporter, has also curbed exports of non-basmati rice varieties in an attempt to keep a lid on domestic prices ahead of key state elections.

“We are staring at massive losses,” said Sukrampal Beniwal, who grows basmati varieties in the country’s north. “We have harvested our crop, but there are no buyers.”

Farmers plant summer-sown rice varieties in the rainy months of June and July and start harvesting their crops in October. As the new harvest trickles in, prices start to fall.

Farmers, millers and exporters had believed the government would lower the MEP, which they consider too steep, as the new-season crop comes to market.

“The decision to continue with the $1,200 MEP is a big blow to us,” said Vijay Setia, a leading exporter from the northern state of Haryana, one of India’s breadbaskets, adding that the government needed to cut it to $850-$900 a ton with immediate effect.

Basmati rice farmers are struggling to sell their produce because millers and traders have stopped coming to dozens of wholesale markets to buy, Beniwal said.

Paddy prices of basmati varieties have fallen more than 20% since the government imposed the MEP, traders said.

Basmati is not widely consumed in India and the government doesn’t buy the variety to build state reserves.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

17 hours ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.