ISLAMABAD, July 24: Pakistan’s rice output should rise at least by 10 per cent to over 6 million tons in 2008-09 on a larger planted area, officials and growers said on Thursday adding that exports could top 4 million tons.

A large rice harvest would add to the picture of growing supplies that has seen Asian benchmark prices come off 30 per cent from a record high reached in March.

Pakistan, the world fifth-largest rice exporter, produced 5.5 million tons of rice in the year to June and exported 3.33 million tons.

Fresh grain will start flowing to the market in late August, according to rice traders. “There is nearly a 10 per cent increase in the cultivation area and the production is likely between 6.2--6.4 million tons,” said Ibrahim Mughal, the chairman of the Agri-Forum, a farmers’ association.

“Several farmers switched over to rice from cotton because of rising prices for the grain both in domestic as well as international markets.” The government has set a production target of 5.7 million tons for 2008-09, but the food ministry officials were also hoping output will top 6 million tons.

The rice crop was targeted to be grown over an area of 2.5 million hectares (6.177 million acres).

Rice exporters, however, expected a harvest of around seven million tons from the new crop, thanks to early rains and farmers using better inputs to enhance yield.

“With this kind of output, we will be touching five million tons in rice exports in this financial year,” said Azhar Akhtar, the chairman of the Rice Exporters Association of Pakistan (Reap), which handles the bulk of the country’s rice exports.

Pakistan’s eight-month-long rice season runs from April to November. Final estimates of the crop could be made in late December.

Rice accounts for about 8 per cent of Pakistani exports and 1.2 per cent of gross domestic product.

Annual domestic consumption of rice is about 2.3 million tons.

Domestic prices doubled this year despite a good crop, as exporters took advantage of a tight global market.

Pakistan exported 3.33 million tons of rice in 2007-08, from 3.12 million tons the year before, with the value of exports up 61.53 per cent at $1.18 billion, according to official data.

Exports of basmati rice increased by over 40 per cent to 1.28 million tons, while other varieties declined by nearly seven per cent to 2.06 million tons.--Reuters