Rice exporters have cautioned the government that if Indian rice varieties are not included in the negative trade list, imports from the neighbouring country will badly hit domestic production, causing huge losses to exporters, traders and farmers.
Talking to the media here on Saturday, Rice Exporters Association of Pakistan Chairman Javed Islam Agha said cheaper imports of farm products from India would ruin the potential of Pakistan’s agricultural sector and threaten $2 billion worth of rice exports every year.
“If import of Indian rice is allowed, then our farmers should also be given incentives in line with the subsidies being offered to Indian farmers, to enable them to protect their livelihood,” he said.
Citing examples, Agha said the Indian government was giving about $30 billion in subsidies to farmers. Cost of urea and DAP was less than 50 per cent of fertiliser prices in Pakistan and their farmers were also getting cheap electricity and fuel.
Agha asked the Ministry of Commerce to include all varieties of Indian rice in the negative list to avoid dumping in the Pakistani market, save farmers, traders and exporters and protect important markets of Afghanistan, Iran and Central Asian States.
He pointed out that Pakistani rice traders had placed the first order of at least 2,500 tons with India, of which 100 tons had already reached Punjab markets.
Traditionally, the price of Indian basmati and other varieties was at least $100 to $300 per ton higher than that for Pakistani rice. However, after the arrival of new crop in October and November 2011, India taking advantage of its huge stocks, bumper crop and depreciation of its rupee cut prices by 20 to 30 per cent and is now selling at prices cheaper by $100 to $300 per ton.
According to Agha, the Indian government has also reduced minimum export price for basmati rice from $900 to $700 per ton, far lower than Pakistani basmati prices of $900 to $1,100.
Earlier, India lifted a ban on export of non-basmati rice and allowed export of two million tons. Consequently, traders say, Pakistan lost to India its brown rice market of nearly 170,000 tons in the European Union (EU) and was facing great difficulties in export of basmati to the Middle East and other countries of the world.
Published in The Express Tribune, February 26th, 2012.
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