Trade Development Authority of Pakistan (TDAP) Chairman Tariq Puri has underscored that public sector rice research facilities in Punjab and Sindh are useless as they cannot contribute anything for rice crop. TDAP is willing to extend all possible cooperation to private sector for seed research and development. Addressing the members of Rice Exporters Association of Pakistan (REAP), TDAP chief said rice research institutes, in Kala Shah Kaku and Dokri, Larkana, were working as typical government organisations, which had no benefit for agriculture and rice trade of Pakistan. He asked REAP members to constitute a special committee that would make recommendations for seed development.
Puri underlined that money was no issue, TDAP would offer matching grant to REAP for seed development. “If private sector invests $1 million for research and development, TDAP will pool the same amount of money for development of rice produce of Pakistan. If a revolutionary seed is developed with an investment of $1 million, it is no price. It will enhance the country’s competitiveness by increasing yield. However, farmers’ awareness is another area that requires intervention, besides seed development,” he maintained.
TDAP chairman said rice industry had to prioritise its agenda otherwise the country would be kicked out from international rice trade by its competitors, especially India. TDAP knew, he indicated, that domestic rice industry was facing the toughest competition from the neighbouring country as it had devalued prices by nearly 30 per cent to keep it competitive in international markets.
Volatility in rice trade during recent years was beyond the control of anyone. Citing the example of economic recession in the West, Arab spring and economic meltdown in United Arab Emirates (UAE) – the core hub of rice trade, he pointed out that all rice exporting countries, including Pakistan and India were affected. However, Pakistan could fight with India up to some extent to protect its position in rice markets, but it could not have complete control over India, he maintained.
He asked rice exporters to go for value addition and explore new markets. He pointed out that in 2001-02, domestic industry introduced parboil rice products that helped Pakistan in capturing South Africa, Saudi Arabia and GCC markets. Now the industry had started introducing steamed rice products, which would ultimately add value.
Appreciating the efforts of farmers and rice exporters, he said that Pakistan was hardly exporting $300 million worth of rice, but now it had touched $2 billion despite all odds. He was hopeful that the country would achieve $2.5 billion rice export target, if circumstances improved. Speaking about marketing, TDAP chief said the country had already invested a lot in marketing, but now the time had come to invest in branding and product development. He said TDAP would continue its efforts to introduce Pakistani rice varieties to new markets. He pointed out that China was one of the fastest growing markets in the region, where purchasing power was swelling rapidly. TDAP was focusing to enter into Chinese markets. A small market share of 1.5 billion consumers would be sufficient for Pakistan; he said and added, “I believe Pakistan can export anything to China.”
Updating on Free Trade Agreement (FTA) with India, Puri said that it was a hot debate that China would flood Pakistani markets with Chinese merchandise when Islamabad was negotiating FTA with China, but it never happened. The same was the case with India; he said and added that regional trade was always advantageous, especially when the developed world was in recession.
He indicated that TDAP was setting up a study group comprising of foreign experts to look into the potential commodities and products, which could be exported to India and prepare a methodology to tap this opportunity. The group would interact with key stakeholders, including farmers and rice exporters, to conduct an in depth research on Indian market and propose a list of items, which could be exported to Indian market from Pakistan.
TDAP chairman underlined that he was sure that Pakistan would be the net rice exporter to India. He asked REAP members to recommend the government about tariff structure with India. Puri further disclosed that TDAP was also trying to capture Afghanistan and Iran markets. Duty structure problem would also be taken up with Iranian authorities, he maintained.
He revealed that Indian Commerce Minister was visiting Pakistan on February 13. TDAP wanted to initiate talks on geographical indicators (GI) in a cordial environment as litigation would never produce results. Basmati was a Punjab’s product and the province should maintain its leading role and TDAP would fight for it. He said that he would ask the Indian minister to bring some leading rice traders with the delegation so local rice exporters could develop direct contact with them.
