ISLAMABAD, Aug 13: The European Union and Pakistan have signed an agreement for including super basmati in the list of preferential treatment to be effective from September 1, 2004.

Sources told Dawn on Friday that the agreement was signed the other day in Brussels by commercial trade minister Tariq Puri on behalf of the Pakistan government with EU officials.

Under the agreement, a zero-duty facility will be available on exports of Pakistan's basmati-370, kernal and super basmati to EU member countries subject to a community control system based on DNA analysis and protection of basmati rice as a geographical indication.

However, Pakistan has asked the EU for keeping two lists, separating the varieties of rice on the basis of origin at the persistent demand of exporters. The possible talks on the issue would take place in September.

The annex I of the agreement lists three basmati varieties from Pakistan and seven basmati varieties from India as one simple list. On the whole, the duty on milled rice has come down from earlier 416 euro per ton to 175 euro per ton, raising the possibility of white rice export tremendously to EU member countries.

The sources said that the export of all other varieties of brown rice other than the three varieties listed for the zero-duty would take place at around 65 euro per ton. Under the transitional arrangement, the sources said, from September 1, 2004 till the entry into force of DNA analysis system, the European Commission's applied rate of duty on these varieties of basmati would be zero.

According to the measures, however, if market disturbance occurred, the commission would consult with Pakistan in this regard. If no agreement was reached on the issue, the commission reserves the right to revert to the bound rate of duty of 65 euro per ton for husked brown rice. The export of super basmati variety stood at around 84,000 tons during the fiscal year 2003-04 as compared to about 90,000 tons in the year 2002-03.