ISLAMABAD: Commerce Ministry said on Monday that export of Pakistan’s Basmati rice to Saudi Arabia, United Arab Emirates (UAE) and Kenya was hit badly due to different reasons.
Briefing a National Assembly panel headed by Shandana Gulzar, Commerce Ministry’s Director-General Dr. Syed Kausar Zaidi shared the plans of his Ministry to boost exports of agri products.
He said that 80 per cent share of rice imports of Saudi Arabia is with India because many Saudi investors have either purchased or established rice mills in India, which are exporting the produce to Saudi Arabia. He; however, expressed the hope that the outcome of Prime Minister’s recent visit to Saudi Arabia may have some positive impact on the export of rice.
Zaidi further stated that export of Pakistani Basmati rice to Kenya has been hit badly, but he did not share details.
He said, China and Philippines are also Pakistan’s big markets but they consume broken rice, not the Bastmati rice.
Rice exports: cautious optimism?
He maintained that a couple of containers of rice were also held in France and Belgium, adding that the issue has now been sorted out.
He further contended that the government has started several initiatives, the results of which will come in the days to come.
Sri Lanka has requested Pakistan for further quota of rice of 0.2 million tons in addition to the quota already agreed in the Free Trade Agreement (FTA), Zaidi stated.
The representative of Commerce Ministry further stated that the Ministry wants to give rice a status of industry but the Ministry of Industries and Production (MoI&P) has refused to entertain the proposal, based on the rationale that it was a provincial subject.
He said the Commerce Ministry is preparing a plan for insurance of fruits and vegetables which would be ready in the next two months.
He was of the view that since the plan is being prepared by the Commerce Ministry, and two of its organisations, i.e., National Insurance Corporation Limited (NICL) and Pakistan Reinsurance Corporation Limited (PRCL) are already engaged in this activity, the business of insurance should be assigned to Commerce. He requested the Convener to invite the CEOs of both organisations in the next meeting.
On the issue of Exim Bank, Zaidi said that it was with the Finance Ministry which has no understanding of trade, adding that it would have been functioning if given to the Commerce Ministry.
Pakistan’s share in trade of agri products is 2.9 per cent, as Pakistan is low in ranking despite being an agrarian economy.
During discussion, Dr. Syed Waseem-ul-Hasan noted that Iran is denying phytosanitary certificates for re-export of Pakistani produce to Central Asian States through land route.
“I sent a letter to Pakistani Commercial Counsellor to Iran to raise this issue with the Iranian authorities during the recent visit of Prime Minister’s Advisor on Commerce and Investment,” he said.
Shandana Gulzar promised to take up this issue with the Iranian authorities including signing of Mutual Recognition Agreement (MRA).
The representatives of Ministry of National Food Security and Research shared their viewpoint on the proposed plan of digitization of agri products and argued that sale and purchase of cotton cannot be digitized due to its business model and massive involvement of private sector whereas wheat can be channelized as it is procured through PASSCO and Provincial Food Departments.
Shandana Gulzar maintained that the benefits of digitization will go to small landholders who are getting loans at 40 per cent. The main focus of the new report on agriculture is the small farmers.
She also asked about the reasons for putting World Bank’s plan “Pakistan go global” on ice. She said the representative of World Bank is lamenting the abandonment of the project of $500 million.
Nawabzada Shazain Bugti, MNA raised the issue of non-availability of water and hurdles in levelling of 0.7 million acres of land in Dera Bugti. The land is suitable to grow pulses and rice.
The panel will submit its report to Special Committee of National Assembly on agriculture products headed by the Speaker National Assembly.
Copyright Business Recorder, 2021