June 20, 2006	Tuesday	Jumadi-ul-Awwal 23, 1427

ISLAMABAD, June 19: India has refused to import chillies from Pakistan despite facing a domestic shortage. The Indian government has turned down the Pakistani offer on the grounds that the availability of the Pakistani chillies in the Indian market will deprive local farmers of earning high prices for their produce.

The Indian decision has failed the ongoing efforts of the Pakistan’s food and agricultural authorities to gain access to this new market, where demand for the commodity is increasing.

“We don’t know the reasons behind the Indian decision. They have a shortage back home but still don’t want to import our chillies despite the fact that we have a surplus production,” an official of the federal ministry of food, agriculture and livestock (Minfal) told Dawn on Monday.

Pakistan has produced 119,000 tons of chillies this year, 47pc more than last year’s production of 81,000 tons. This record increase in production has enabled the country to export the surplus to India as the

two countries have been busy in liberalising the import and export regime for the last few years.

“The Indian government knows how to protect the interests of its farmers. They are not like us as we have announced Rs12bn subsidy on the import of edible items like sugar and pulses to enable farmers of the other countries to get the benefits,” the official said.

He said India had rejected the proposal to enable local farmers to reap good rates

made possible by increase in demand.

Pakistan had offered India its chillies keeping in view its own import of edible items from India after facing a shortfall in domestic production this year. Pakistan has allowed the import of 773 items from India and New Delhi on the other hand put over 800 items on the positive list of bilateral trade.

However, Pakistan is of the view that India is not only protecting its farmers but its industrialists also refuse to import those items where Pakistan has a competitive edge.

“These are the protectionist moves. We should also learn these tricks in a global trade order where trade regimes are opening up and are more liberalised,” the official added.