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MUMBAI/KARACHI: Heavy rains and widespread flooding in basmati rice-growing regions of India and Pakistan have raised concerns over output of the premium staple, driving prices higher as supplies are expected to fall.

India and Pakistan exclusively grow aromatic basmati rice, which sells for nearly twice the price of regular varieties and is primarily imported by Britain, the Middle East, and the United States.

Floods have severely affected the basmati rice crop, but with waters now receding, losses are expected to remain limited provided there is no additional rainfall, said Nitin Gupta, senior vice president at Olam Agri India.

India’s northern states of Punjab and Haryana contribute over 80 percent of the country’s total basmati rice production, while Pakistan’s Punjab province accounts for more than 90 percent of its output.

Heavy rainfall in late August and earlier this month caused the Ravi, Chenab, Sutlej, and Beas rivers to overflow, flooding these regions.

Initial assessments indicate that crops such as paddy, cotton, and pulses on nearly one million hectares were affected in Punjab and Haryana, said an Indian government official.

In Pakistan’s Punjab province rice, sugarcane, corn, vegetables, and cotton on thousands of hectares were submerged earlier this month.

The floods have hit farmers hard, just as crops such as basmati rice and cotton were nearing harvest, said Ibrahim Shafiq, export manager at Latif Rice Mills Pvt Ltd.

In India and Pakistan, paddy seedlings are usually transplanted in June–July, with harvesting starting in late September.

The industry was expecting a bumper crop, but the damage is likely to reduce supplies and push basmati rice prices higher, Shafiq said.

“Conservative estimates put the damage at 20 percent of basmati rice grown in Pakistan...This would definitely drive up the price for basmati rice in local markets as well as international markets,” Shafiq said.

Traders have raised prices by $50 per ton over the past week, and they could rise further if supply shortages remain significant by the end of the harvest, said Gupta of Olam.

However, some industry officials, including Karachi-based Chela Ram Kewlani, say the current price rise is temporarily fueled by reports of crop damage and is expected to ease once supplies from the new season’s harvest arrive.

ISLAMABAD: The United States (US) Federal Aviation Administration (FAA) has started reviewing Pakistan’s aviation standards, a Pakistan Civil Aviation Authority (PCAA) spokesperson said on Monday, with Islamabad eyeing resumption of direct flights to the US after a five-year hiatus.

The Pakistan International Airline (PIA), the national flag carrier, was banned in June 2020 from flying to the European Union (EU), the United Kingdom (UK) and the US, a month after one of its Airbus A-320s plunged into a residential neighborhood in Karachi.

The disaster, which killed nearly 100 people, was attributed to human error by the pilots and air traffic control and was followed by allegations that nearly a third of the PIA pilot licenses were fake or dubious.

Earlier this year, the debt-ridden airline resumed flights to Europe and the UK after a four-and-a-half-year ban on the airline was lifted by the European and British regulators. The airline, however, remains barred from flying to the US.

“A five-member FAA delegation, accompanied by two officials from the US Embassy, began its engagement today (Monday) with the PCAA,” Shahid Qadir, a PCAA spokesperson, told Arab News.

“This report by the FAA safety team will pave the way for the resumption of flight operations to the United States.”

The first session in Karachi was presided over by the PCAA Director-General Nadir Shafi Dar, who gave the FAA officials a comprehensive briefing on the organizational structure, mandate and operational functions, according to Qadir.

The FAA team will conduct structured interactions with relevant PCAA departments and officials this week to review the PCAA’s legal, regulatory and operational framework in line with international standards.

“Their assessment will encompass a wide range of activities, including detailed briefings, verification of regulatory and operational documents, and evaluation of existing systems,” the PCAA spokesperson said.

“The team will then finalize its findings and prepare a formal assessment report to be submitted to the competent authorities in due course.”

The PCAA spokesperson said that no system was flawless and that external reviews often brought observations for improvement.

“So, when we get a report of this assessment, we will improve those things,” he added.

The official said an FAA security team would make another visit by the end of this year to assess security systems at Pakistani airports, airspace protocols, cargo operations, gateways and ground handling.

“Once both reports are completed and all systems have been checked, then we will be in a position to seek permission and if granted, we will be able to proceed for direct flight operations resumption,” he added.

The resumption of direct flights to the US will improve the credibility of the South Asian country as well as its airlines.

“Around 700,000 Pakistani expatriates living in the United States, along with business and leisure travelers, will benefit as direct flights are expected to significantly reduce travel time,” Qadir said.

Muhammad Umair, a Pakistani aviation expert, described the visit as the first step toward resumption of Pakistani flights to the US that would increase both passenger traffic and cargo volume, but cautioned that the process would be lengthy.

“They [FAA] will review all safety and security protocols, identify any gaps, and ask the Pakistani authorities to address them,” he told Arab News, adding that it may take “many months.”

“The arrival of the team shows that things are moving in a positive direction, and this will be economically very beneficial for Pakistani commercial airlines.”