The rice exporters of Pakistan who are already facing cut throat competition in the international market with cheap non-Basmati rice of India are upset about the liberalisation of trade with the neighboring country as free imports from Delhi will result into great losses for both rice growers and exporters.
If Delhi who at this point is willing to open its transit route via Pakistan, decides to look beyond the Pakistani markets; the rice sector of Pakistan will lose its markets in Iran, Afghanistan and other Central Asian states.
Talking to Profit, Taufiq Ahmed Khan, former Vice Chairman of Rice Exporters Association of Pakistan (REAP) said that the rice exporters were too much confused over the move of Ministry of Commerce who through a 15 days notice demanded recommendation over the negative list of trade being prepared for trade talks with India. As the sector needs almost a year to evaluate the impacts of imports from India which comparatively has three times high stock and quality of rice; the exporters have demanded to postpone the enlisting process as they were fearful about the imports from India after granting it the ‘Most Favored Nation’ status. “As India is eyeing other important markets of the region where Pakistan enjoys geographical benefits, we can also face huge losses in terms of exports to these countries,” he said adding that the country’s exports have already become stagnant in the last one month due to the arrival of cheap Indian rice in the international market. Besides that, India also has a bumper crop this year with almost 20 kinds of exportable rice against the only two to three kinds of rice being exported from Pakistan. Sensing the immediate and negative impacts of the proposed imports from India, the exporters have shown their serious concerns over the opening of rice imports. Talking about the ministry’s notice, he said that the exporters were not able to evaluate the impacts of the imports from India and give their inputs within 15 days. “We have demanded to postpone the process as the issue is very serious and sensitive”. According to sources, the competition in the international market was intensified when the import of non-basmati rice from India was started again after lifting a ban.
Indian government, which had banned private companies from shipping non-basmati rice in April 2008 amid a global food crisis, lifted that restriction on Sept 8. Exports from the world’s second-largest producer were a total of 4 million tonnes in the year. From April 1, Indian shipments will account for 11 per cent of global trade this calendar year; overtaking U.S and Pakistan to become the third-largest shipper.
Though it was estimated that shipments from Pakistan may exceed 4 million tonnes with the production of 6.5 million tones and an increase of 38 per cent during 2011- 2012, the damages made to rice crop after the heavy monsoon rains in Sindh were also likely to affect the country’s exports.
