Pakistan, Indonesia ink $400m rice export deal

Jakarta will purchase 1m tons of rice over four years

ISLAMABAD: In a bid to boost the rice industry, Pakistan has concluded an agreement with Indonesia for export of one million tons of rice valuing around $400 million over the next four years.

The agreement for rice export will be executed by the Trading Corporation of Pakistan (TCP) and Bulog (state logistics agency) of Indonesia.





TCP has finalised the first export tender for 15,000 tons of rice which includes 5,000 tons of basmati and 10,000 tons of non-basmati rice.

The finalisation of the tender has had a positive effect on rice prices in the country as they have started stabilising.

Commerce Minister Khurram Dastgir Khan said the intensive trade diplomacy of the Ministry of Commerce had resulted in securing a large export market for Pakistani rice for the period 2016-19.

He said the export order for one million tons would end uncertainty prevailing in the domestic rice market and lucrative prices would prove to be an impetus for growers to increase paddy production in coming years.



Dastgir said the commerce ministry in collaboration with the Ministry of National Food Security and Research would bring new legislation for high-yielding rice varieties and for geographical indication of Pakistani basmati rice.

Pakistan is the first country compared to members of the Association of Southeast Asian Nations (Asean) that has a rice export agreement with Indonesia. Trade between Pakistan and Indonesia rose 215% to $2.2 billion in 2014 from $700 million in 2010 after conclusion of a preferential trade agreement.

Published in The Express Tribune, January 8^th, 2016.

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