Subsidized Indian rice is "damaging" Pakistan’s exports and Islamabad must take up the issue with the World Trade Organisation (WTO) against New Delhi for “jeopardizing international food security in violation of its rules,” the country’s rice exporters said on Thursday.

Pakistan rice exports both Basmati and coarse varieties, from July 2020 to May 2021 went down by 14 percent than the previous year. So far Pakistan has exported 3.3 million tonnes of rice in the 11 months of 2021 fiscal compared to 3.87 million tonnes in the year-ago period.

“India has offered its rice at an average rate of USD 360 per tonne while we have been quoting a price of USD 450 per tonne. This difference of around USD 100 per tonne has badly damaged our exports,” said Rice Exporters Association Pakistan President Abdul Qayyum Paracha in the Pakistani city of Lahore.

Talking to Dawn, Paracha said: “Under the WTO rules, flooding international markets with subsidized food, particularly rice, is an offense. Cambodia, Myanmar, Nepal, Thailand, Vietnam all are offering rice export prices at USD 420 to USD 430 per ton. Then how could India offer the same at USD 360 per tonne?” he asked.

Indian Basmati exports hit record volume as it has so far exported 4.3 million tonnes of the commodity, he added.

The REAP president highlighted that Pakistan was not the only country hurt by heavily subsidized Indian rice exports. “Thailand, Vietnam, Cambodia, Myanmar and Nepal are all hit by the phenomenon,” he added.

Other factors affecting Pakistan’s rice exports included an exorbitant rise in freight rates and ample stocks available with the destination countries imported during panic buying because of one after another wave of coronavirus pandemic, said Paracha while responding to a query.

“Two years ago, we had been paying USD 1,500 per container freight, for instance, for Italy. The same has now shot up to USD 8,000 per container — an increase of USD 250 per tonne.”

He demanded the Pakistan government raise the issue of India flooding foreign markets with subsidized exports and “thereby jeopardizing international food insecurity” with the WTO at the earliest.

(SAM)