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ISLAMABAD: In what appears to be a new twist in Pakistan-India row over the ownership of Basmati, growers have opposed the government’s reported intention to allow export of the rice variety to India, saying the move will not only lower domestic paddy price but also allow the neighbouring country to re-export it under Indian brand.
“There is a big difference in the cost of production of Basmati rice in both countries. India subsidises its agriculture to the tune of $30 billion, while in Pakistan there is 16 per cent general sales tax (GST) on all inputs along with the recently imposed gas infrastructure cess,” Basmati Growers’ Association chief Hamid Malhi said on Sunday.
The issue has re-emerged in the wake of the government’s decision to liberalise trade with India. Indian Commerce Minister Anand Sharma is scheduled to visit Pakistan on Feb 13. The two countries have been locked in litigation over the ownership of the Super Basmati brand since 2008.
Mr Malhi said the price of urea fertiliser, one of the main inputs in rice production, in Pakistan was nearly two times more than what it is in India.
He said it was a known fact that Basmati exported from Pakistan was repacked in the Gulf by traders from other countries and sold as a product of Indian origin.
According to the figures for 2010-11, 45 per cent of the country’s Basmati exports (445,000 tons) land in the Gulf states. “It is not possible that the whole quantity is being consumed in the region,” he said. The growers’ complaint has come after recent meetings of a select group of exporters, who monopolise the rice export, with Trade Development Authority Chief Executive Tariq Puri, seeking facilitation of Basmati export to India.
Mr Malhi said India also exported Basmati rice to the Gulf and was the only competitor of Pakistan in the field. He expressed the apprehension that sale of Basmati rice to India would provide it an upper hand in determining the international price of the product and low quality exports from India would continue to be dubbed as being of Pakistani origin.
