Harmful trading practices

It has long been known that unscrupulous export practices as well as unimaginative marketing techniques are part of the reason why our export sector has failed to perform at the expected level. An idea of how bad things are in this sphere can be had from the decline that Pakistan's rice exports to Saudi Arabia have suffered during the recent years.
Whereas not long ago this country was the major supplier to the Saudi rice market, according to a recent press report, it now has been pushed down to number three position while India has captured the lion's share of the market with the US is close behind.
As it is, Pakistan is a major producer of not only the finest quality basmati; it also grows different varieties of Irri rice - for which there is a huge international market - in abundance. Yet poor marketing techniques, unethical business practices that include selling of substandard goods as well as reneging on agreements, are some of the reasons why Pakistan has lagged behind its competitors.
Particularly worrisome is a persistent perception in the foreign markets that the quality of Pakistani produce is not dependable. Sadly, this perception is based on solid experience.
The press report quoted above narrates a recent case wherein many bags of Irri-9 were sold in Saudi Arabia labelled as "pure Pakistani basmati rice." Of course, those who bought the fake quality rice would have thought that if this was what Pakistani basmati looked and tasted like, it would be better to go and buy Indian basmati. That also explains why there have been instances of large quantities of Pakistani rice being bought by merchants and middlemen at low rates and then packaged in small parcels for retail and sold on considerably higher prices as India's produce.
It may be recalled that earlier in March, while speaking at the Islamabad Chamber of Commerce and Industry (ICCI) the Saudi Ambassador had also averred that some exporters were sullying Pakistan's image in his country by selling substandard goods as well as unqualified manpower. He had also cited an example in which Saudi laboratories had checked a consignment of Pakistani rice and found it to be far below the required standard. Needless to say, it was rejected.
On another occasion, he had also observed that there was a great potential for export of Pakistani fruit, especially mangoes and apples, to his country. But for lack of quality control not much trading activity is in evidence in this field either.
In fact, Islamabad has been receiving a number of complaints from the Saudi authorities and now from Italy as well regarding the rice. The Rice Exporters Association of Pakistan (REAP) recently met to discuss possible remedial action.
It is reported to have come up with the suggestion that the Saudi Ambassador should be invited to the Association's quality research centre to see for himself the "high quality of work" being done there. That though amounts to missing the whole point. Perhaps, the Ambassador is already aware that "high quality of work" is going on in this country, and he also knows that, as he himself pointed out at the ICCI, it has a great potential to export agricultural produce to Saudi Arabia. But the problem is lack of quality control, which has to be addressed effectively.
The Commerce Ministry must adopt a well thought-out plan towards that end. The least it can and must do is to take serious and urgent notice of the complaints such as the one mentioned by the Ambassador. Those exporters who bring a bad name to the country and also harm the business interests of honest people should be duly penalised. As we have suggested in these columns before, if the government finds it difficult to do the needful on its own, it should consider instituting international inspections. The issue is too important to be neglected any more.