ISLAMABAD, April 10: Legislators drew the government attention on Thursday towards the export of basmati rice from Pakistan at much reduced unit price as compared to other countries, causing a loss of $500 million to the exchequer during 2007-08.

Raja Asad Khan, Abdul Majeed Khan, Humair Hayat Khan Rokhri and Mohammad Barjees Tahir raised the issue in the National Assembly through a call-attention notice seeking explanation from the commerce ministry.

Commerce Minister Shahid Khaqan Abbasi told the house that more than 20 per cent increase was recorded in the export price of basmati price in the international market. He said it should not be assumed that Pakistani basmati was sold at lower price.

Mr Abbasi said basmati fetched $673 per ton during the current fiscal year as against $570 per ton last year. The value of total rice exports has, so far, crossed $900 million during the current fiscal year.

He said that India had imposed ban on export of all varieties of non-basmati rice to protect domestic supplies as inflation rose and global prices of grain continued to surge.

India raised the minimum export price for basmati rice to $1,200 per metric ton free on board to discourage export.

An official source in the food ministry told Dawn that Pakistani exporters were selling basmati for $300 to 400, which was cheaper than the Indian rice prices in the international market.

As far as non-basmati rice is concerned, Pakistan is exporting the commodity at $350 a ton, which is a big anomaly.

Analysts said the production did not keep pace with the demand during the last few years, as a result surplus production for export reduced.

They said like India, Pakistan should also introduce a minimum export price for basmati and impose ban on non-basmati to discourage export of rice.

Analysts say unchecked export of rice is threatening to create a serious rice shortage.

According to the official, the ministry of food is opposing the introduction of minimum export price or ban on certain varieties of rice, which recorded more than 100 per cent increase recently, putting pressure on domestic users.

A leading rice exporter told Dawn on condition of anonymity that the government should do away with the unsecured credit sales based on documents against acceptance (D/A), particularly on export of basmati rice as allowed by the State Bank of Pakistan (SBP).

The SBP requires basmati exporters to export double the value for which export refinance is provided to them.

The system in place by the SBP only benefits major exporters of rice who manage such sales due to their financial muscle.

The exporter suggested that value-added export in smaller packing be introduced instead of export in large packing and in bulk containers.

The 20kg should be the largest consumer packing allowed for export. There can be many more such steps which could be devised to realistically address the situation in our national interests, he added.