Pakistani exporters are expecting
a sharp increase in rice exports to Azerbaijan following the recent decision to
waive duty on rice imports from Pakistan.
Rice Exporters Association of
Pakistan (REAP) Secretary General Muhammad Kashif-ur-Rehman told WealthP that
exporters expect the Azerbaijan government to take full advantage of the
relaxation announced by the government in importing rice from Pakistan. The
government of Azerbaijan has announced a duty exemption on the import of rice from
Pakistan till December 31, 2027. Kashif said Pakistan's rice exports to
Azerbaijan were registered at $1.57 million in 2021, which was only 4.63% of
Azerbaijan's total rice imports during that period.
“Pakistan has the potential to boost rice export to Azerbaijan following the waiver of customs duty,” the REAP secretary general said. He was of the view that the tax waiver is also an opportunity for Pakistan to compete with regional rice-exporting countries and grab more shares in the Azerbaijan market. He said that Pakistan’s rice exports increased during the last few years and were at their highest at $2.51 billion in 2021-22. Rice exports also remained highest in terms of quantity at 4.87 million metric tonnes (MT) during the last year, he informed. Kashif called upon the government to help exporters find new markets for rice export. “Concessions from various countries in customs duties will increase exports,” he added. Chela Ram Kewlani, Chairman REAP, said in a statement that Pakistan’s rice export to Azerbaijan would be enhanced following the decision of waiving the customs duty. “The decision will not only help in enhancing rice export but will also increase the volume of bilateral trade between the two countries,” he added.
Kewlani urged rice exporters to take
maximum advantage of this relaxation. According to the State Statistical
Committee of the Republic of Azerbaijan, the country imported 46,765 MT of rice in
2021 worth $33.92 million. India was the largest exporter of rice to Azerbaijan
having a 73% market share worth $24 million, followed by Russia with a share of
9.79% worth $3.32 million, and Kazakhstan with a 9.65% share worth $3.27 million
in 2021. Pakistan remained the fourth largest rice exporter to Azerbaijan with
a market share of 4.63% worth $ 1.57 million last year. According to the
World Bank, the population of Azerbaijan is 10.14 million, and rice is among the
main food items of most of the people in the country.
According to the State Bank of
Pakistan (SBP), rice export to Azerbaijan was registered at $242,000 during the
first quarter (July-September) of the current fiscal year against $158,000
during the same period of last year, with an increase of 53.16%. In September
2022, Pakistan’s rice export to Azerbaijan grew by 110% and rose to $82,000
from $39,000 during the corresponding month of last year. Kenya, China,
Afghanistan, Indonesia, Kazakhstan, Tanzania, and other Gulf and European
countries are the major buyers of Pakistani rice.
Source:
Online/KSU
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