The Pakistani business community expressed its reservations over India’s demand for subsidies on rice.
On Wednesday, Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) President Zubair Ahmed Malik said that if the subsidy was granted it would imbalance regional trade.
He added that agricultural exporters should compete on the price and quality of their produce and not on the availability of subsidies. Malik informed that during the Doha Round member nations agreed to ensure the elimination of all forms of subsidies and that the Indian demand for rice subsidies was a direct form of agricultural support.
He apprehended that granting a subsidy on Indian rice would disturb trade in the entire region, and particularly for the region’s smaller members.
Rice production in Pakistan holds an extremely important position in agriculture and in the national economy. It is the country’s second most important crop which earns billions of rupees via export for country. Pakistan is the world’s fourth largest producer of rice after China, India and Indonesia.
Pakistan was responsible for supplying 30 percent of the World’s paddy rice output. Millions of farmers rely on rice cultivation as a major source of employment.
The Indian request for a subsidy on rice would directly affect millions of Pakistani farmers who were already facing various challenges due to the previous year’s floods. This could also create a serious food security issue for Pakistan.
