Pakistan loses European rice market share to India
Posted by Labels: European Union (EU), Import, India, Pakistan, Rice
Pakistani exporters have lost the European rice market share to their Indian counterparts, say REAP office-bearers.
Pakistan, which used to export 300,000 tons of rice to the European Union countries every year, exported only 20,000 tons of rice this year, as Indian rice is replacing Pakistani rice quickly due to New Delhi’s unfair trade practices, besides higher per acre yield and cheaper costs particularly energy cost.
A rice variety named “CRS 30”, developed by Indian scientists, is being sold in the foreign markets especially EU by Indian exporters with the label of “basmati”. This new variety has been developed by the Indian agri scientists as a substitute of basmati, and it gives high yield at low cost, wiping Pakistani basmati rice from the foreign markets.
The office-bearers of Rice Exporters Association of Pakistan (REAP) revealed these facts during a reception hosted in honour of the TDAP chairman.
They further said that government research institutes at Kala Shah Kaku or Ghotki had failed to produce results in this regard. They urged the govt to constitute a team which would start working on war-footings for producing a quality seed with more yield.
They suggested that seed development task should be given to the private sector and incentives should be announced for the scientists who would produce required seed. “Incentives should be declared prior to assigning this task as it will encourage our scientists to work with more zeal,” they observed.
REAP members proposed exploring the possibilities of entering into a Counter Trade Agreement with Iran on mutually preferential terms for purchase of oil and sale of agricultural products including rice without the need for any hard currency.
They stressed the need for making laboratory QRC Rice Inspection Cell more effective besides getting achieving any international accreditation for this lab so that its certification is accepted by the importing countries worldover.
On the occasion, TDAP Chairman Tariq Iqbal Puri said that TDAP is setting up a study group to look into the potential commodities and products, which can be exported to India.
This group will interact with all the stakeholders including rice exporters to conduct an in depth research on Indian market and propose a list of items, which can be exported to Indian market from Pakistan.
Replying to the points raised by rice exporters, TDAP chairman admitted that presently this trade needs quality seed producing good yield. He said that all the stakeholders have to sit together taking this single item agenda.
Puri also stressed the need for awareness of rice growers and said even best marketing can not produce desired results if the product is below quality. He assured the exporters to arrange a meeting with the State Bank of Pakistan (SBP) next week to seek some relief in mark-up on export refinance as proposed by some of the REAP members.
TDAP Chief Executive also agreed with the proposal of the REAP members for focusing on China and Russia besides some other countries for increased export of Basmati rice. He said incomes and purchasing power of Chinese and Russian people are on the rise and Pakistani exporters should work hard to make inroads in these markets. He observed every product from Pakistan can be sold in Chinese market.
Puri also hoped that the government can not ask TCP and Passco to intervene in rice market to avoid any artificial increase in the prices.
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