Pakistan should avoid selling rice to Philippines
Pakistan should not sell rice to Philippines as it will boost prices at home hitting millions of households, said a statement issued here today.
The Government should impose taxes on exports of the commodity to discourage exports, said Dr. Murtaza Mughal, president of Pakistan Economy Watch.
The Philippines which is the world’s biggest rice importer is in talks with Pakistan and China, broadening a search for supplies beyond Thailand. Islamabad should stop these talks as prices have already surged beyond limits.
Rice futures surged to a record in April after some exporters curbed shipments to guarantee local supplies and the Philippines failed to fill state tenders. The jump, coupled with record energy costs, raised concerns that the world may face food shortages and increased civil unrest.
“A lot of countries are looking to broaden their sources of supply in the face of the recent market turmoil,” in this situation Pakistan should make stockpiles and avoid selling,” said Mughal.
World Bank President Robert Zoellick earlier this month called on China to boost rice exports. Extra shipments from China `would damp the price immediately,” Zoellick told government leaders at the World Food Security conference in Rome.
China began to tax exports of rice and other grains from the start of this year to combat inflation and ensure food security. Vietnam, India and Egypt also restricted rice exports, bolstering prices but Pakistan is yet to take any decision on these lines.
It’s unlikely that China will export much rice at a time when domestic supply and demand are just in balance, and the Sichuan earthquake may fan inflation. China’s monthly exports are expected to remain low, possibly below 30,000 tons, before supplies rise after summer, analysts have said.
Pakistan, the world’s fifth-largest rice exporter, will allow shipments of 1 million tons because local needs have been met, the Rice Exporters Association of Pakistan said on May 15.
