China has agreed to import rice, especially basmati, from Pakistan, and a protocol would be signed in the presence of the Prime Ministers of the two countries following their formal talks in Beijing on December 15, 2004, sources told Business Recorder here on Saturday.
According to sources, Pakistan had formally approached the Chinese government, seeking quarantine certificate and access to Chinese market of its high quality rice in February this year. They said the two sides have now agreed to the text of the protocol under which Pakistan's rice could find a big market in China since its quality is much better than the rice of Thailand, the only country which exports rice to China. They said that some Chinese companies have already shown interest to buy Pakistan's Basmati rice since with the improvement in living standards in China there is a growing trend to eat imported and good quality rice.
Pakistan exports rice worth $600 million annually to Iraq, Sri Lanka, Bangladesh, and Middle East and African countries. However, with this year's bumper rice crop expected to be more than 5 million tons, almost 2.5 million tons more than its domestic needs, and the devaluation of the rupee, a surge of orders is expected from different countries later this month.
Sources said that opening of China's huge market to Pakistan's rice would give a tremendous boost to the otherwise stagnant agriculture sector, and success of Shaukat Aziz's first 5-day visit (from Dec14 to 18) to China as Prime Minister of Pakistan. About 20 more protocols will also be signed to widen cooperation between the two countries in different fields.
Before coming home, Prime Minister Shaukat Aziz will also address a largely attended conference of investors and businessmen in Shanghai, sources added.