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Iran links rice deal to price cut and quality

JAVED MEHMOOD

ISLAMABAD: Iran has deferred import of 100,000 tonnes of 'basmati' rice from Pakistan and linked this deal with price cut and supply of 15,000 tonnes of Irri-9 according to a prescribed standard, it was learnt.

Last week Iranian authorities placed order before a Pakistani delegation for the import of 15,000 tonnes of Irri-9, but put on hold the purchase of 100,000 tonnes of 'basmati' rice saying that its price was too high to be afforded, well placed sources told Business Recorder.

Iranian officials made it clear to Pakistani delegation that 'basmati' rice deal would materialise only when Pakistan reduces its price according to their demand.

While giving order for the import of 15,000 tonnes of Irri-9 rice they also told the local delegation in plain words that Iran would stop buying rice from Pakistan in future in case the Pakistani exporters violated the schedule of shipment and its agreed quality, said sources.

Pakistani delegation, led by Chairman, Trading Corporation of Pakistan (TCP), Javed Ashraf Hussain, comprising Siddiq Alvi, Director-General, Export Promotion Bureau (EPB), Lahore, Shahzad Ali Malik, Chairman, Rice Exporters Association of Pakistan (REAP), etc., visited Iran a few days back to explore market for rice there.

It was further learnt that the Iranian authorities informed the Pakistani delegation that their government provides rice to its people at subsidised rates, hence it cannot afford to import basmati rice at the rates prevailing in the international markets.

They also apprised the delegation that in the past some Pakistani exporters violated agreements and had supplied substandard rice, after which their government closed market for Pakistani rice.

At Pak-Iran Ministerial Committee meeting, held here a couple of months back, Iran demanded 1000,000 tonnes of basmati rice from Pakistan at the rate of $356 per tonne as against the average international price of $485 a tonne.

The Ministry of Commerce promised to consider this request, but it could not take any decision so far, delaying the possibility of 100,000 tonnes of basmati rice export to the brotherly country.

"Pakistan can supply rice to Iran at the rate being demanded by the importing country because the said country has agreed to purchase basmati mixed with a prescribed percentage of broken rice," an official of the Ministry said.

He said the Ministry and Rice Exporters Association of Pakistan (REAP) should decide it as early as possible, otherwise the country can lose the order.

The official also said that the government and the private sector should honour commitment with Iran regarding quality and schedule of shipment in future in order to promote rice export and to uphold the image of the country.