KARACHI, Oct 31: Sri Lanka has lifted a two-year long ban on rice import and cut duty, removing the last ditch in the way of Free Trade Agreement (FTA) with Pakistan.

Chairman, Rice Exporters Association (REAP), Abdul Rahim Janoo, told APP here on Thursday the ban imposed in 1999, had been lifted with effect from October 31, 2002.

Sri Lanka has reduced import duty on rice from Rs7 to Rs5 per kg, allowing Pakistani rice exporters to take advantage of the proximity.

He said that immediately after the lifting of this ban, Pakistani exporters were successful in securing orders for the supply of 7,000 tons of rice from Sri Lankan importers.

Janoo was of the view that the removal of ban on rice import would pave way for the successful conclusion of Free Trade Agreement between the two countries as this was the last ditch in the way of this accord.

“When Commerce Minister Abdul Razak Dawood will sign FTA on November 5, with his Sri Lankan counterpart, Pakistani exporters will get a further cut in duty by 50 per cent on the export of rice to Colombo.

He said Pakistan would be able to export ‘simba’ rice to Sri Lanka at $180 per ton. This will cost Rs24 a kg to Pakistani exporter in Sri Lanka at an import duty of Rs2.50 per kg under FTA.

He pointed out that Sri Lanka was pre-dominantly a large market for Pakistani rice exporters before this ban. “We were supplying about 125,000 to 130,000 tons of rice to Sri Lanka which used to import about 200,000 annually two years ago,” Janoo added.

He said that when Sri Lanka floated a tender for the supply of 40,000 tons of rice two months ago, Pakistan secured export orders for 34,600 tons.

He pointed out that Pakistani rice reaches Colombo within three days due to short transit time and availability of many a shipping lines on this route. Besides, Pakistani rice specially simba is also popular in Sri Lanka.

Janoo said Sri Lanka had good rice crop for the past two years, but this season the country is reported to have lesser production. Rice is the main staple food in the country and the Sri Lankan government cannot afford a shortage of rice due to its political importance, he observed.—APP