News sources indicate that Pakistan s rice exporters may experience some difficulties as some of its buyers impose import duties. Recently, Pakistan s non-basmati rice exports faced stiff price competition from hybrid rice coming from Thailand and Vietnam. Pakistan is also facing strong competition from China, its major competitor in the Indonesian market. Rice is the country s second leading source of export revenues. There is no subsidy or tax on rice exports.
Exporters compete in the open market for exportable supplies.
Only a minor shift from rice to competing crops, like sugarcane, is expected as returns to rice production remain relatively attractive. In 1998, the government of Myanmar permitted local entrepreneurs to reclaim wetlands, virgin and vacant lands to grow rice and other cash crops. These policy changes are expected to benefit the country s rice industry. In Argentina there is a substantial downward revision in the 2000 and 2001 rice area harvested. Area harvested decreases to 129 and 97 thousand hectares for the years 2000 and 2001 from a level of 183 thousand hectares in 1999.