KARACHI, Nov 24: Sri Lanka has temporarily waived import duty on rice and issued licenses for import of 33,000 tons of Irri-6 rice having a shipment schedule up to Dec 10, 2001.
In the past, Pakistan had been a major supplier of coarse rice to Sri Lanka but with a bumper paddy crop there during 2000-01, and levy of 35 per cent import duty by Sri Lanka, no export of Irri-6 took place.
The decision by Sri Lanka offers an opportunity to Pakistani exporters to meet the tight shipping schedule due to geographical proximity and ensure quick delivery as there is no congestion at country’s ports.
Already a shipload of 500 tons of Irri-6 rice has left for Colombo and several other exporters who are in direct link with approved importers in Sri Lanka are set to meet the tight shipping schedule.
Most of the deals being finalized by exporters with Sri Lankan importers are in the range of $160 to $168 per ton c&f Colombo, exporter said.
During 1998-99 and 2000, Sri Lanka, in order to meet its domestic shortfall, imported around 250,000 tons of Irri-6 rice from Pakistan. In subsequent years, it harvested bumper paddy crop and imposed import duty to protect grower’s interest.
Out of 33,000 tons, the trading division (CWE) of Sri Lanka had already allocated 5,000 tons for import to Food Cooperation of India (FCI) at $152 per ton. However, the balance 28,000 tons is being handled by private importers, rice exporters said.
Due to congestion at Bombay port, the Indian exporters would not be in a position to meet the tight shipping schedule fixed by Sri Lankan government ahead of general election. The waiving of 35 per cent duty is being taken as a political decision by many rice analysts.
Against this, there is only a three-day transit period from Pakistani ports, which are not faced with congestion but exports from Mumbai under present circumstances need seven days for shipment of any consignment to Colombo port.
The chairman Rice Exporters’ Association of Pakistan (REAP) Abdul Rahim Janoo told Dawn that Pakistani exporters stand good chance for exporting the entire quantity of 28,000 tons of Irri- 6 rice to Sri Lanka.