Rice exporters of Pakistan pin high hopes on Iran visit

A 16-member delegation of Rice Exporters Association of Pakistan (REAP) has left for Iran to explore trade and investment opportunities in general and enhance rice export to the neighboring country in particular.

The delegation, led by REAP Chairman Samee Ullah Naeem, plans to visit Tehran as well as the city of Mashhad where it will hold meetings with representatives of Tehran Chamber of Commerce, Industries and Mines and Mashhad Chamber of Commerce and Industry, nation.com.pk reported on Tuesday.

The delegation will conclude meetings with Ministry of Health and Ministry of Commerce for buying Pakistani rice through government tenders. It will be also participating in lunch arranged by Iran Rice Importers Association.

The deliberations are aimed at increasing trade and investment between the two friendly countries.

The chairman said the REAP will discuss the resumption of rice exports from Pakistan, which nosedived after sanctions, implementation of currency swap agreement and the condition of good manufacturing practices (GMP) certification with Iranian authorities. He said that Iran used to be an 800,000-ton basmati rice market until sanctions were imposed in 2010 and exports have now drastically reduced to barely 60,000 tons.

REAP considers unavailability of banking channel the only barrier for the decline in trade, he added.

The REAP members will invite the Iranians to visit Pakistan, where the association could arrange fruitful meetings with progressive business groups, to seek fresh collaborative ventures.

Pakistani exporters’ team will also hold meetings with Government Trading Corporation (GTC) of Iran, besides meeting with Health Ministry officials to raise the issue of GMP certification for Pakistani rice exporters, which presently has become a major hurdle in the way of rice export to Iran.

Iranian Health Ministry has set health standards for rice import and only those who are registered under its GMP certification program can export rice to the country. “I hope that the country would regain its share in the Iranian market, which can become the good destination for their basmati exports,” he said.

“Iran is one of the largest rice importers with annual purchases of $2 billion. However, Pakistan’s rice accounts for nearly an eight percent of Iran’s market,” he concluded.