Pakistan losing Rice exports to India

[sparklingway]

Talk doesn't cook rice
​

Pakistan is losing rice export market to India

By Khalid Hussain

"Coarse rice for food, water to drink, and the bended arm for a pillow -- happiness may be enjoyed even in these", said Confucius. Another Chinese philosopher Cheng Chan-Pao looked at rice from another perspective. "Cutting stalks at noon time, perspiration drips to the earth. Know you that your bowl of rice, each grain from hardship comes?" And then there is a famous Chinese proverb that echoes, "talk doesn't cook rice!"

However, despite our close friendship with the Chinese and our keen desire to export rice to them, Pakistani market players and the government want to have everything without doing anything. The rice scene in Pakistan is, therefore, reminiscent of the proverbial "Khayali Pulao" despite its obviously yummy aroma!

The delights of the effervescent rice brew in Pakistan appear to grow. A look at the numbers is impressive. "From a mere 300 million dollars in 2000-01, the export of rice has risen to realise 2.04 billion dollars in 2008-09. The target is to earn 2.4 billion dollars in the year 2009-10 ending this month of June," former Chairman of the Rice Exporters Association of Pakistan (REAP) Abdul Rahim Janoo tells TNS. "Exports have really taken off since the formation of the REAP in 1999," says Janoo.

Government privatised the Rice Export Corporation of Pakistan in 1989 but heavy duties restricted trade for many years. REAP has been the catalyst realising greater exports without any government support or subsidy, claims Janoo. Rice exporters are not happy with the government research and want action for new varieties. The present budget has also disappointed them with the waiver on plant import duties because "90 percent of the plant was already duty free," says Janoo who is quick to point out that over 330 new plants have come on line since 2001 thanks to REAP efforts that have seen the total number of rice plants go beyond 400 in the country. He wants the government to withdraw the 1.5 percent withholding tax on local market rice purchases.

Rice production in Pakistan -- the fifth largest rice exporter in the world -- was 6.5 million tonnes this year. Domestic consumption is estimated around 2.3 million tonnes showing a net surplus of 4.2 million tonnes available for export. According to figures collected by TNS, a total of 4.2 million tonnes of rice has been exported by May 15 chasing a target of 4.4 million tonnes. Of this, 3.1 million tonnes was non-Basmati rice sold at an average price of $400-450 per tonne that shows an export price appreciation of almost 17 percent over the last year. The balance exports are 1.1 tonnes Basmati rice that has seen a depreciation of seven percent in export price since November last year having been sold for an average of $900 per tonne despite its unique aroma, taste and commanding market presence. To put things in perspective, the average export price of Basmati from India has been $1500 over the last few years.

Basmati production this year was three million tonnes, out of which domestic consumption is estimated to be around one million tonnes only. If Pakistan is able to sell its Basmati rice at prices at par with those charged by Indian exporters, the remaining crop has a net worth of $3 billion. Basmati exports during July-February 2008-09 period showed a 97 percent increase in value terms and 28 percent increase in quantity manifesting improvements.

The Basmati Growers Association (BGA), however, minces no words in charging the REAP has been colluding with Indian merchants to keep the Basmati prices low in Pakistan. "Basmati has been cultivated since centuries by farmers for its quality, aroma and value. Fifteen districts of Punjab, Pakistan, are the home of this premium fine quality aromatic rice," says President BGA Chaudhary Hamid Malhi who has been fighting to safeguard the rights of growers by registering Basmati as a "Geographical Indicator (GI)" in Pakistan.

The BGA won a strongly contested case from the Trademarks Registrar in 2008 to have the right to the GI in their name as representatives of the unique rice growers. Interestingly, the REAP is not at all ready to talk to press on their case challenging the GI registration in favour of the rice growers.

"The Managing Committee of REAP decided in 2007 not to allow media into the contention. Besides the case is in court and sub-judice", said Ibrahim Janoo. More interestingly, the Agricultural & Processed Food Export Development Authority (APEDA) of India has also joined the case in the Sindh High Court taking the same stand as has been followed by REAP.

There is another Basmati case that is being heard by the New Delhi High Court in India wherein Pakistan has challenged the use of "Super Basmati" by India as the variety has been in use and traded by the country for many years. Besides the government, TDAP, REAP and BGA are among the parties challenging the Indian registration of "Super Basmati".

"Our lawyer has been pressurised by the Indian government to drop the case and we are now looking for a new lawyer for the case scheduled for hearing in August later this year", Deputy Secretary Commerce (Exports) Akhtar Masood informs TNS. India won the famous "Texmati" case against an American multinational that had earlier registered a trademark for "Basmati" with the WTO. Following their victory, India has been in talks with Pakistan to jointly register Basmati with the GI registry of the WTO. "There have been two rounds of talks since 2007, but there has been no decision yet," says Masood. The Pakistani delegation also had representation from REAP, TDAP and the BGA while it was led by Joint Secretary (Exports) Chaudhary Ali Azhar. The process has been on hold because of the Indian abolition of the Composite Dialogue process with Pakistan in the wake of the infamous Mumbai terrorist attacks in October 2008.

The GI term identifies a good as emanating from a particular geographic location, where characteristics of the good are largely attributable to its geographic origin. However, it is pertinent to note that the formulation of these laws do not hinder the process of national GI registration. However, the process remains contentious to date and sub-judice as all the parties, including the BGA, have moved courts seeking clarity on rights to the GI registration.

There is a range of issues at play in Geographical Indications (GI) protection as provided for in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the WTO. Both India and Pakistan have been in competition to secure GI-related provisions of the WTO to benefit from various contours of exclusive trade rights. However, India has a well-formulated GI Act following TRIPS provisions for GI registration while Pakistan is lagging behind.

"India has moved to register its Basmati in the WTO GI registry and it is soon going to get the right to market its Basmati across the world. We are being hampered by the rice exporters who have been selling to Indian merchants in the Middle East for easy profits," charges BGA President Malhi.

So it seems that we are still busy in preparing only more Khayali Pulao in Pakistan!

 

[Capt.Popeye]

Talk doesn't cook rice
​

Pakistan is losing rice export market to India

By Khalid Hussain

"Coarse rice for food, water to drink, and the bended arm for a pillow -- happiness may be enjoyed even in these", said Confucius. Another Chinese philosopher Cheng Chan-Pao looked at rice from another perspective. "Cutting stalks at noon time, perspiration drips to the earth. Know you that your bowl of rice, each grain from hardship comes?" And then there is a famous Chinese proverb that echoes, "talk doesn't cook rice!"

However, despite our close friendship with the Chinese and our keen desire to export rice to them, Pakistani market players and the government want to have everything without doing anything. The rice scene in Pakistan is, therefore, reminiscent of the proverbial "Khayali Pulao" despite its obviously yummy aroma!

The delights of the effervescent rice brew in Pakistan appear to grow. A look at the numbers is impressive. "From a mere 300 million dollars in 2000-01, the export of rice has risen to realise 2.04 billion dollars in 2008-09. The target is to earn 2.4 billion dollars in the year 2009-10 ending this month of June," former Chairman of the Rice Exporters Association of Pakistan (REAP) Abdul Rahim Janoo tells TNS. "Exports have really taken off since the formation of the REAP in 1999," says Janoo.

Government privatised the Rice Export Corporation of Pakistan in 1989 but heavy duties restricted trade for many years. REAP has been the catalyst realising greater exports without any government support or subsidy, claims Janoo. Rice exporters are not happy with the government research and want action for new varieties. The present budget has also disappointed them with the waiver on plant import duties because "90 percent of the plant was already duty free," says Janoo who is quick to point out that over 330 new plants have come on line since 2001 thanks to REAP efforts that have seen the total number of rice plants go beyond 400 in the country. He wants the government to withdraw the 1.5 percent withholding tax on local market rice purchases.

Rice production in Pakistan -- the fifth largest rice exporter in the world -- was 6.5 million tonnes this year. Domestic consumption is estimated around 2.3 million tonnes showing a net surplus of 4.2 million tonnes available for export. According to figures collected by TNS, a total of 4.2 million tonnes of rice has been exported by May 15 chasing a target of 4.4 million tonnes. Of this, 3.1 million tonnes was non-Basmati rice sold at an average price of $400-450 per tonne that shows an export price appreciation of almost 17 percent over the last year. The balance exports are 1.1 tonnes Basmati rice that has seen a depreciation of seven percent in export price since November last year having been sold for an average of $900 per tonne despite its unique aroma, taste and commanding market presence. To put things in perspective, the average export price of Basmati from India has been $1500 over the last few years.

Basmati production this year was three million tonnes, out of which domestic consumption is estimated to be around one million tonnes only. If Pakistan is able to sell its Basmati rice at prices at par with those charged by Indian exporters, the remaining crop has a net worth of $3 billion. Basmati exports during July-February 2008-09 period showed a 97 percent increase in value terms and 28 percent increase in quantity manifesting improvements.

The Basmati Growers Association (BGA), however, minces no words in charging the REAP has been colluding with Indian merchants to keep the Basmati prices low in Pakistan. "Basmati has been cultivated since centuries by farmers for its quality, aroma and value. Fifteen districts of Punjab, Pakistan, are the home of this premium fine quality aromatic rice," says President BGA Chaudhary Hamid Malhi who has been fighting to safeguard the rights of growers by registering Basmati as a "Geographical Indicator (GI)" in Pakistan.

The BGA won a strongly contested case from the Trademarks Registrar in 2008 to have the right to the GI in their name as representatives of the unique rice growers. Interestingly, the REAP is not at all ready to talk to press on their case challenging the GI registration in favour of the rice growers.

"The Managing Committee of REAP decided in 2007 not to allow media into the contention. Besides the case is in court and sub-judice", said Ibrahim Janoo. More interestingly, the Agricultural & Processed Food Export Development Authority (APEDA) of India has also joined the case in the Sindh High Court taking the same stand as has been followed by REAP.

There is another Basmati case that is being heard by the New Delhi High Court in India wherein Pakistan has challenged the use of "Super Basmati" by India as the variety has been in use and traded by the country for many years. Besides the government, TDAP, REAP and BGA are among the parties challenging the Indian registration of "Super Basmati".

"Our lawyer has been pressurised by the Indian government to drop the case and we are now looking for a new lawyer for the case scheduled for hearing in August later this year", Deputy Secretary Commerce (Exports) Akhtar Masood informs TNS. India won the famous "Texmati" case against an American multinational that had earlier registered a trademark for "Basmati" with the WTO. Following their victory, India has been in talks with Pakistan to jointly register Basmati with the GI registry of the WTO. "There have been two rounds of talks since 2007, but there has been no decision yet," says Masood. The Pakistani delegation also had representation from REAP, TDAP and the BGA while it was led by Joint Secretary (Exports) Chaudhary Ali Azhar. The process has been on hold because of the Indian abolition of the Composite Dialogue process with Pakistan in the wake of the infamous Mumbai terrorist attacks in October 2008.

The GI term identifies a good as emanating from a particular geographic location, where characteristics of the good are largely attributable to its geographic origin. However, it is pertinent to note that the formulation of these laws do not hinder the process of national GI registration. However, the process remains contentious to date and sub-judice as all the parties, including the BGA, have moved courts seeking clarity on rights to the GI registration.

There is a range of issues at play in Geographical Indications (GI) protection as provided for in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the WTO. Both India and Pakistan have been in competition to secure GI-related provisions of the WTO to benefit from various contours of exclusive trade rights. However, India has a well-formulated GI Act following TRIPS provisions for GI registration while Pakistan is lagging behind.

"India has moved to register its Basmati in the WTO GI registry and it is soon going to get the right to market its Basmati across the world. We are being hampered by the rice exporters who have been selling to Indian merchants in the Middle East for easy profits," charges BGA President Malhi.

So it seems that we are still busy in preparing only more Khayali Pulao in Pakistan!

i think it is time that the authorities and traders in both countries, work together to increase their exports. i've no information about the export figures for each country, but always had the impression that Pakistan exports more Basmati to North America, while India has larger exports to Europe. Could be wrong there.
About the WTO GI registry, if both countries can work jointly they will surely increase their marketing clout. But the fact that we are both different political entities- does that weaken our case in that matter?

 

[Spring Onion]

In the past India had been stamping Pakistani best basmati rice as Indian and had been selling these this way thanks to our own corrupt people who had been agreeing to this dishonesty.

I dont know about the current status

 

[RobbieS]

In the past India had been stamping Pakistani best basmati rice as Indian and had been selling these this way thanks to our own corrupt people who had been agreeing to this dishonesty.

I dont know about the current status

Come on Jana. Dont come up with such stuff. You are a journalist and you should back up your claims with verifiable sources. When Indian rice is paid higher than why would somebody buy Pakistani Basmati and label it as Indian?

I think this is just a case of bad management by Pakistan. Although agricultural research institutes like PUSA have periodically come up with improved rice varieties, I dont think there would be a lot of difference between Pakistani and Indian Basmati since the area where they are grown is pretty similar. In fact this is a potential area of cooperation between the two countries. We can form a joint committee that makes sure the GI and the patent is not violated and Western companies dont take away what is rightfully ours.

In fact during the time of the Basmati patent fiasco, I remember reading that India and Pakistan had jointly fought off the US company in question. But the article seems to suggest that it was India alone that contested the patent and is now enjoying the fruits. That is hard to believe since Pakistan is still selling Basmati rice.

 

[sparklingway]

Come on Jana. Dont come up with such stuff. You are a journalist and you should back up your claims with verifiable sources. When Indian rice is paid higher than why would somebody buy Pakistani Basmati and label it as Indian?

You can read the same thing from the above posted interview. The BGA is saying that the REAP guys sell their product in Dubai to Indian sellers and it is known that it is stamped India then because we do not have a GI.

 

[RobbieS]

Here is an article that throws some light over the patent issue -
India-U.S. Fight on Basmati Rice Is Mostly Settled - NYTimes.com

An interesting quote from the article -

India and its rival Pakistan said they would fight the patent, calling it a threat to the economic survival of thousands of farmers in the subcontinent.

 

[RobbieS]

You can read the same thing from the above posted interview. The BGA is saying that the REAP guys sell their product in Dubai to Indian sellers and it is known that it is stamped India then because we do not have a GI.

Possible. So here's another take at it. Since it seems that Pakistan doesnt have GI on Basmati rice, Pakistani farmers and exporters find selling it to Indian sellers a way to survive. What Jana said implied that India was stealing Pakistani rice and passing it off as Indian. Whereas the arrangement seems to benefit both parties. Having said that, its Pakistanis legal right to have a GI attached to its Basmati rice as well since essentially its grown in the same region.

 

[Justin Joseph]

How can Pakistan claim Basmati its 100% Indian. Its like Pakistani exploiting name of India by calling their restaurant as Indian.

 

[ramu]

In the past India had been stamping Pakistani best basmati rice as Indian and had been selling these this way thanks to our own corrupt people who had been agreeing to this dishonesty.

I dont know about the current status

FYI : Basmati - Wikipedia, the free encyclopedia


Patent battle
===================
In September 1997, a Texas company called RiceTec won a patent (U.S. Patent No. 5,663,484) on "basmati rice lines and grains." The patent secures lines of basmati and basmati-like rice and ways of analyzing that rice. RiceTec, owned by Prince Hans-Adam of Liechtenstein, faced international outrage over allegations of biopiracy. It had also caused a brief diplomatic crisis between India and United States with India threatening to take the matter to WTO as a violation of TRIPS which could have resulted in a major embarrassment for the United States.[6] Both voluntarily and due to review decisions by the United States Patent Office, RiceTec lost or withdrew most of the claims of the patent, including, most importantly, the right to call their rice lines "basmati."[7] A more limited varietal patent was granted to RiceTec in 2001 on claims dealing with three strains of the rice developed by the company.[8]

Now you will say, the intellectual property of how to grow Basmati belongs to Pakistan.

 

[sparklingway]

How can Pakistan claim Basmati its 100% Indian. Its like Pakistani exploiting name of India by calling their restaurant as Indian.

I guess Basmati has been grown for a long, long time and since we were part of the same country, it has been grown in Pakistan since time immemorial as well. Yoi have your own GI, we are trying to get our own GI. It's not as if Basmati can only or does only grown on Indian soil.

As for you guys, we are not talking about the Texasmati and Patent battles, the issue here is that we are trying to get our own GI and the REAP currently sells Basmati to Indian retailers in Dubai to get a handsome profit instead of battling for their own GI which will reap greater profits. As the product is of similar (or greater) quality, hence Indian exporters do buy our produce and sell it as their own.

As I said, Basmati has been grown in South Asia for a long time, not just India. Basmati has been grown in Pakistan for a long time as well. We need a GI, otherwise our Intl status as a Basmati producing region is recognized.

 

[deepaksayshai]

India and Pakistan should work together and get mutually benefitted. The consumption and the buying power in India is growing. Exporters to India are making huge profits. You can almost import anything from US which is less that USD 2000. All these companies are making huge profits. Look at the urls Global Easy Buy ; Shop in the US from India @ 20North - Millions of products, Thousands of brands. My friends import so much stuff online

There are several areas India and Pakistan can work together and create a win-win situation for people of both countries, e.g.. it is becoming increasingly expensive to hire talented IT resources; some work can be out sourced to Pakistan. Excluding IT outsourcing Indian IT market is close to USD 25 billion. Microsoft alone makes close to USD 2 billion sales in India.There are several hardware and software companies. GOI is implementing several software projects. The unique identification project itself is USD 10 billions.

 

[SpArK]

History of Basmati

Basmati Rice is a simple grain, yet throughout history it has been on royal menus of various cultures as the main dish. From the pilav of Turkey, polou of Persia, pilafs of the Steppes, the isotos and paellas of the Mediterranean, to the pulau of India it has been served to great sultans, maharajahs, shahs and emperors. Spices, nuts, dried fruits, vegetables and herbs are a natural for Basmati rice. Basmati rice transforms rice dishes into extraordinary meals.

Also known as the "Queen of Rice", this highly aromatic grain that is long and elegantly thin, has originated from Vasumati which means earth recognized by its fragrance. The full exposition of the word is from Hindi. Bas originating from Prakrit Vas which has a sanskrit root- Vasay connoting aroma; and mati from mayup meaning ingrained from the origin. Common usage has changed Vas to Bas while joining bas and mayup the latter changed to mati.. Thus the word Basmati originated. According to Ayurveda, Basmati, the king of all varieties of rice, is saatvic or pure, is nourishing for the body tissues and is easy to digest.




Basmati Rice has been cultivated at the foot of the Himalayan mountain ranges in India for thousands of years. The rivers Yamuna and Sutluj irrigate the Basmati paddy fields in Haryana and Punjab respectively. To obtain the correct aroma and flavor of Basmati rice, proper ageing is required to reduce its moisture content. The best quality Basmati rice comes from the old Karnal district, known as the 'rice bowl of India'. Basmati is now grown in Karnal, Panipat, Kaithal, Kurukshetra and Ambala districts of Haryana. It is also grown in Punjab, Dehradoon region of Uttranchal and Jammu region of Jammu & Kashmir.

 

[deepaksayshai]

The bottomline is India and Pakistan should trust each other.

 

[ramu]

How can Pakistan claim Basmati its 100% Indian. Its like Pakistani exploiting name of India by calling their restaurant as Indian.

It is not 100% Indian, neither it is 100% Pakistani. It has a high element of China in it. It was grown for centuries in present day Pakistan as well as India and its origins and history date back to 8000 years.

 

[xenia]

i havent read all of the previous posts but basmati patent was won back by india n pakistan!!its a product of subcontinent..just like the neem case whose patent was given back to india n pakistan..infact not exactly a patent, right of growing n using it for medicines..