India’s move on rice to hurt Pakistan

[BATMAN]

India?s move on rice to hurt Pakistan - DAWN.COM

ISLAMABAD: Ahead of the next World Trade Organisation (WTO) ministerial meeting, India has begun aggressive lobbying to get legal shelter for subsidy on rice exports to the world market, a move likely to affect Pakistan’s rice exports.

The issue of seeking more protection for Indian rice exports came up during the G-33 countries recent consultations in Geneva as part of the proposals on agriculture reforms for Bali meeting to be held in December.

“Pakistan is in the middle ground with China and Indonesia, which are in favour of enlarging the green box subsidies — non-prohibited subsidies — but no exemption to trade distorting support”, a trade official told Dawn.

India is seeking huge flexibility to distort rice production and trade in the name of food security, but trade experts says it will take away food security of rest of the small countries whose farmers depend on the production and export of rice.

As a result of trade distorting subsidies in India, Pakistan has already lost its market share in rice exports to India in the last couple of years owing to subsidised Indian exports to the world market.

Pakistan lost its position because of the aggressive exports from the stocks maintained by Food Corporation of India, a state-owned organisation.

Pakistan exported rice worth $1.756 billion in July-May period in 2012-13 as against $1.908bn over the corresponding period last year, reflecting a decline of over seven percent.

The impact of the trade distorting subsidy was not limited to Pakistan’s exports of rice because Thailand and Vietnam were also no more the first two exporters of the world as this position was taken over by India. India has already taken number one position in exports by releasing stocks which are highly subsidised.

“Indian stocks are much higher than what they need. The result is that government warehouses were over utilised and finally the stocks are exported at subsidised prices,” the source further said.

Contrary to this, government of Pakistan came out of the business of rice export two decades ago and the rice exports have become a steady source of foreign exchange for the country and the whole business was carried out the private sector.

Experts says it was a need of the time, that Islamabad should uphold WTO disciplines to protect Pakistan rice exports worth 2bn dollars and invest in research, pest eradication, storage, improvement in yield and develop varieties which consume less water.

G-33 proposal is demanding exemption from domestic support (aggregate measurement of support) on this assumption that it is minimally trade distorting and it is linked with the food security of the country. The objective of stock holding programs is to ensure food security of your own population.

 

[Echo_419]

Good move lets choke thier dollar Income

 

[Ammyy]

India?s move on rice to hurt Pakistan - DAWN.COM

This is open market and every one working for its own interest...

If China is on place of India they will do the same ... why big fuss??

 

[Skull and Bones]

Now we can't even shape our export policies, as it may hurt Pakistan?

 

[Srinivas]

This is like China is exporting goods at cheap prices and so the countries like India, Pakistan and others are suffering in production and manufacturing sector .....

fact is subsidies are there in the west which are huge compared to India, one has to compete and win in international trade.

 

[Brahmos_2]

Survival of the fittest

Check this old news.


China ignores Pakistan's concerns, approves Indian basmati imports

BEIJING: China has made a rare trade move opening up import channels for Indian basmati rice although it might hurt exports of similar produce from its close ally, Pakistan. According to sources, this is a politically sensitive move that suggests that Beijing is no more willing to walk the extra mile to protect Pakistan's interests.

Despite political backing, Pakistani basmati suppliers have not been able to make a dent in the Chinese market because of failures at the branding and marketing areas. The challenge lies in taking the product into the homes of upper class Chinese and expatriates instead of focusing only on the restaurant industry, sources said.

"India has a strong brand as the producer of 70 per cent of world's supply of basmati "

China ignores Pakistan's concerns, approves Indian basmati imports - Times Of India

 

[SwAggeR]

And still they want Congress in power.

Start supporting Modi, may be he rectify and undo current GOI decisions, your only hope is Modi , so start supporting him.

 

[Manindra]

Thats a agricultural export not big deal to GOI.

 

[Rajaraja Chola]

Every action of India is related to Pakistan? WTF

Pakistan can raise the voice against Chinese when they subsidise everything to sell cheaply first.
And secondly we dont have storehouses to store huge quantities of rice properly. So selling for something is better than letting them rot and getting nothing

 

[acid rain]

Pakistan exports mangoes at half the price of Indian mangoes and is eating into our mango exports, you dont see us complaining about it.

 

[GR!FF!N]

well,atleast this decision spare us from the huge wastage of food grains that Govt has to do to destroy the old food grains..we can't give them to poors(which is given on paper but still they don't get it,a criminal offence done by food mafias) as this might hurt the farmer's interest..so,sell them in the international market in subsidized price...a lot of $$$ will come to India..

 

[neehar]

perhaps the tittle is a little 2 much..we trade for profits not to hurt any other nation.

 

[Jazzbot]

Business friends, no one to blame, its our own wrong policies after all which we are eventually paying for..