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Pak-Indonesia sign agreement on rice exportation

ISLAMABAD, 07 JAN (DNA) – Pakistan has concluded an agreement with Indonesia to export one million metric ton of rice estimated at around US $ 400 million over four years.

The agreement for export of rice will be implemented by Trading Corporation of Pakistan (TCP) and Indonesian Government’s organization BULOG (State Logistic Agency).

TCP has finalized first tender of 15,000 metric tons of rice export to Indonesia which includes 5,000 metric tons of basmati rice and 10,000 metric tonnes of non-basmati rice. The finalization of this tender has a positive effect the rice prices in Pakistan and the prices have started to stabilize.

Minister for Commerce, Engr. Khurram Dastgir Khan said that the intensive trade diplomacy of Ministry of Commerce has resulted in securing a large export market for Pakistani rice for 2016-2019.

He said that the export order of one million metric ton will end the uncertainty prevailing in the domestic rice market and lucrative prices will prove to be an impetus for growers to expand rice production in coming years.

Mr. Dastgir said that the Ministry of Commerce in collaboration with the Ministry of National Food Security and Research will bring in new legislation for high-yielding varieties of rice and law for Geographical Indication for Pakistani basmati rice.

Pakistan is the first country out of the Association of South East Asian Nations (ASEAN) to have rice export agreement with Indonesia. Pak-Indonesia trade rose 215% to $2.2 billion in 2014 from $ 700 million in 2010 after the conclusion of Preferential Trade Agreement. DNA

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