Subsidized wild rice is damaging Pakistan’s exports and therefore the government must take up the difficulty with the planet Trade Organisation (WTO) against New Delhi for “jeopardising international food security in violation of its rules,” a representative of local rice traders said on Thursday.
Pakistan rice exports, both Basmati and coarse varieties, from July 2020 to May 2021 (11MFY21) are 14 percent but that of the previous year. thus far Pakistan has exported 3.3 million tonnes of rice within the 11MFY21 compared to three .87m tonnes during an equivalent period last year.
“India has offered its rice at a mean rate of $360 per tonne while we’ve been quoting a price of $450 per tonne. This difference of around $100 per tonne has badly damaged our exports,” said Rice Exporters Association Pakistan President Abdul Qayyum Paracha.
Talking to Dawn, Mr Paracha said: “Under the WTO rules, flooding international markets with subsidized food, particularly rice, is an offence. Cambodia, Myanmar, Nepal, Thailand, Vietnam all are offering rice export prices at $420 to $430 per tonne then how India could offer an equivalent at $360 per tonne?”Indian Basmati exports hit record volume because it has thus far exported 4.3m tonnes of the commodity, he added.
The REAP president highlighted that Pakistan wasn’t the sole country hurt by heavily subsidized wild rice exports. “Thailand, Vietnam, Cambodia, Myanmar, and Nepal are all hit by the phenomenon,” he added.
Other factors affecting Pakistan’s rice exports included an exorbitant rise in freight rates and ample stocks available with the destination countries imported during panic buying insight of 1 after another wave of coronavirus pandemic, said Mr. Paracha while responding to a question.
“Two years ago, we had been paying $1,500 per container freight, as an example, for Italy. an equivalent has now shot up to $8,000 per container — a rise of $250 per tonne.”
He demanded the govt should raise the difficulty of India flooding foreign markets with subsidized exports and thereby jeopardizing international food insecurity with the WTO at the earliest.
