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Pak records over Indian basmati
New delhi: Even as the domestic basmati rice
exporters suffer an export duty and a lowered minimum export price (MEP)
with a ban on non-basmati rice export that pre-empted export of
non-notified premium varieties such as Pusa 1121, Pakistan stole the
thunder by fixing a higher and graded MEP on two varieties of
basmati without slapping an export ban on its non-basmati variety.
Sources in the export industry told Business Line here that after a
marathon meeting from April 29 night till the dawn of April 30, the
Rice Exporters Association of Pakistan had with its Finance
Minister, a notification issued by the Commerce Ministry on May 1,
put the MEP for super basmati at $1,500 a tonne, medium grade at
$1,300 a tonne and non-basmati Irri-6 at $750 a tonne.
The higher MEP in both the first two varieties of Pakistan was far
higher than the $1,000 MEP India has declared but not notified till
date. It was contended in Islamabad that the higher MEP would confer
maximum benefits on farmers and push growers to augment yield for
the next crop. It was further stated that basmati rice production
would go up to eight million tonnes in the next crop from the
current crop of 5.5 million tonnes. Islamabad said with the MEP in
place, the value of rice exports would increase to $4 billion by the
end of this year from the $1.2 billion last year. Policy analysts
say that by putting a higher MEP, Pakistan is signaling the message
to the rest of the world that its basmati rice is better quality
than the counterpart Indian varieties.
Already when India notified a variety in 2006 that was originally
evolved by Pakistan, there was some resentment in Islamabad that led
to the stalling of joint bid by New Delhi and Islamabad for a
geographic indication (GI) to basmati rice. Now by putting a higher
MEP to its super basmati variety at $1,500, Pakistan has sent an
unequivocal signal to the connoisseur of basmati that its variety is
superior, deserving a premium price, against India’s basmati MEP at
$1,000 a tonne. —Agencies
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