KARACHI: Rice Exporters Association of Pakistan (REAP) has initiated efforts to get duty-free access into the UK market for the export of white rice.
Currently, there is no duty on the export of brown rice from Pakistan to the UK and EU countries and Pakistani exporters are taking full advantage of duty-free access to the UK and EU. Pakistan exported some 0.35 million of brown rice approximately $300 to UK and EU during the last fiscal year.
In recent development, in the first week of May, Pakistan’s major rice competitor-India has concluded a third round of talk with the UK on FTA to get concessional or duty-free access to the UK for the export of some 240 items including white rice. Both countries are ready to finalize the FTA by October this year.
The maturity of FTA between the UK and India may pose risk to the exports of white rice from Pakistan to the UK. Although, the UK and EU is not major buyers of white rice, however REAP, sensing the importance of this issue, has initiated efforts to get concessional or duty-free access for Pakistani rice exporters.
In this regard, Chairman REAP Ali Hussam Asghar held a meeting with the federal secretary Commerce Saleh Farooqi on Tuesday to discuss the India-UK FTA and its impact on Pakistani rice exports. During the meeting it was decided to further gear up the efforts for the same status from the UK which will be given to Indian white rice under the proposed FTA.
Chairman REAP told Business Recorder on Wednesday that REAP is well aware of the situation and already in touch with the Ministry of Commerce to develop a strategy on this issue. The yesterday meeting with the Secretary Commerce was very successful and he realized the REAP concerns on the UK-India FTA and assured full support, he said.
“We (REAP) are also in touch with Shafiq Shahzad, Pakistan’s Commercial Counselor in the UK and he is already monitoring the issue closely,” he added.
He said “Pakistani white rice quality is much better than our competitors and Pakistan can earn more foreign exchange with export of rice.” Hussam said that as the Eid holidays were starting that week, it had decided to initiate the fruitful efforts after the Eid.
Chairman REAP said that with some 25 percent healthy growth Pakistani rice exports rose to all-time high during the last fiscal year. For the first time in history, Pakistan exported rice worth $2.5 billion during FY22 compared to $2.04 billion in FY21. Pakistan can earn more foreign exchange by exporting rice; however, there is need to make efforts to enhance the rice crop production, he added.
Copyright Business Recorder, 2022
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