Subsidized Indian rice is hurting Pakistan’s exports, and the government should file a complaint with the World Trade Organization (WTO) against New Delhi for “endangering international food security in violation of its regulations,” according to a spokesman of local rice traders.
Between July 2020 and May 2021 (11MFY21), Pakistan rice exports, both Basmati and coarse kinds, are 14% lower than the previous year. Pakistan has so far exported 3.3 million tonnes of rice in 11MFY21, down from 3.87 million tonnes in the same period last year.
“India has quoted a price of $360 per tonne for their rice, while we have quoted a price of $450 per tonne. “This discrepancy of roughly $100 per tonne has severely harmed our exports,” said Abdul Qayyum Paracha, President of the Rice Exporters Association of Pakistan.
“Flooding international markets with subsidised food, particularly rice, is an infringement under WTO rules,” Mr Paracha added. How can India offer rice export prices of $360 per tonne while Cambodia, Myanmar, Nepal, Thailand, and Vietnam all offer prices of $420 to $430 per tonne? He noted that Indian Basmati exports had reached a new high, with the country having shipped 4.3 million tonnes of the item thus far.
Other issues impacting Pakistan’s rice exports include high freight charges and substantial stockpiles accessible with destination countries, which were imported during panic buying in response to wave after wave of coronavirus pandemics, according to Mr Paracha.
“Two years ago, for example, we were spending $1,500 per container freight for Italy. The same has now risen to $8,000 per container, a $250 per tonne increase.”
He requested that the government bring the problem of India flooding foreign markets with subsidised exports, putting international food security in jeopardy, to the WTO as soon as possible.
