ISLAMABAD, Aug 20: Federal Commerce Minister, Humayun Akhtar Khan claimed on Friday Pakistan's rice export would touch the figure of $1 billion during the current fiscal year owing to preferential market access for different varieties of rice in the European Union member countries.

Speaking at a news conference, the minister said the concession granted by the EU for the rice regime of Pakistan in an agreement signed recently would result into increasing the export of the commodities to their markets.

He said the export of rice has increased from $555.457 million during the year 2002-2003 to $634.457 million during the year 2003-2004. Pakistan is exporting all the varieties of rice to more than 114 countries around the globe. It accounts for 5.4 per cent of the value-added in agriculture and 1.3 per cent of the GDP.

Answering a question, he said that government has already provided incentives to the rice exporters for increasing their exports to major rice importing countries. To another question, he said that due to the low production of Irri rice, its exports also decreased during the last year particularly to Afghanistan.

Elaborating the main feature of the recently concluded agreement with the EU, the minister said that it would provide zero rate of duty for Pakistani basmati brown rice; re-inclusion of super basmati variety in the list of approved varieties; duty reduced to 65 euros per ton on the import of husked rice from previous rate of 264 euros per ton.

Under the agreement the duty was reduced to 175 euros per ton on the import of all milled rice including basmati from 416 euros per ton; basmati rice of the varieties produced in Pakistan will be protected as a geographical indication. The European Commission will provide all necessary technical assistance in this regard, the minister said.

Replying to a question, secretary commerce, Tasneem Noorani said that the publication of the new EC Regulation will be translated into English language. He said that there will be no need for making any fresh procedures for the issuing of certificate of authenticity.

To another question, he said that the EU would carry out the DNA testing from import consignments from Pakistan. However, in case the DNA test did not prove the variety of rice, the exporter will have to pay all the duty and taxes. He said the government had already approved NIBGE at Faisalabad for DNA testing.

In reply to another question, he said the pending issue of separate lists for Pakistan basmati and Indian basmati will be taken up with the EU authorities.

Replying to a question, the secretary said that the draft law on Geographic Indication will be finalized soon. After this only Pakistan could get its Basmati besides other items listed in the EU registers for geographical indication.