UPDATE 1-Pakistan scraps minimum rice export price-official

ISLAMABAD, Aug 26 (Reuters) - Pakistan, the world's fifth- largest rice exporter, has removed a minimum export price on non-basmati rice after expectations of a bumper crop, a top industry official said on Tuesday.

"We have received a letter from the government of Pakistan dated Aug. 23 and other than basmati, MEP (minimum export price) has been removed on all other varieties including Irri-6," said Azhar Akhtar, chairman of the private Rice Exporters Association of Pakistan.

"MEP is still there on two varieties of basmati - super basmati and normal basmati," said Akhtar, whose association handles the bulk of the country's rice exports.

A senior food ministry official, Qadir Bux Baloch, earlier told Reuters a decision had been taken to remove the minimum export price on non-basmati rice, which had been imposed this year to increase earnings and check an increased outflow of non-basmati varieties.

The minimum export price for Irri-6, a non-basmati variety and the country's cheapest rice, mainly exported to East and West African countries, was set at $750 per tonne.

A top industry official said last week that after the lifting of minimum export price, Pakistani exporters were likely to offer Irri-6 at between $400 and $450 per tonne free on board (FoB) at Karachi port.

Pakistan's rice output is expected to rise at least 10 percent to over 6 million tonnes in the 2008/09 fiscal year on a larger planted area, officials and growers said.

But exporters estimate rice output at 7 million tonnes, up from 5.5 million a year ago, and say rice exports could exceed 4 million this June-July financial year.

"If there are no restrictions, we can export 2 million tonnes of rice between July and December," said Akhtar, who demanded the removal of all curbs, including the minimum export price on basmati rice, to get maximum benefit from the "bumper crop".