ISLAMABAD: Pakistan has signed an agreement with Indonesia to export one million tonnes of rice estimated at around $400m over four years, the Ministry of Commerce said in statement on Thursday.

The agreement for export of rice will be implemented by the Trading Corporation of Pakistan (TCP) and Indonesia’s Bulog (State Logistic Agency).

TCP has finalised first tender of 15,000 tonnes of rice export to Indonesia which includes 5,000 tonnes of basmati rice and 10,000 tonnes of non-basmati rice. Commerce Minister Khurram Dastgir Khan said the export order will end the uncertainty prevailing in the domestic rice market and lucrative prices will prove to be an impetus for growers to expand rice production in coming years.

Dastgir said that the Ministry of Commerce in collaboration with the Ministry of National Food Security and Research will bring in new legislation for high-yielding varieties of rice and law for Geographical Indication for Pakistani basmati rice.

Pakistan is the first country out of the Association of South East Asian Nations (Asean) to have rice export agreement with Indonesia.

Pak-Indonesia trade rose 215 per cent to $2.2 billion in 2014 from $ 700m in 2010 after the conclusion of Preferential Trade Agreement.

Published in Dawn, January 8th, 2016