By: Khateeja Aftab, Aqsa Ali, Hassan Farooq
(University of Engineering and Technology (UET), Lahore)
Pakistan’s Trade of rice with Russia, under fuel, after Russia imposed that they’ll stop importing rice from Pakistan if the sanitary conditions were not improved. The warning came after Russia’s federal service for Veterinary and Phytosanitary Surveillance (FSVPS) issued a notification regarding violations of sanitary requirements. Similarly, in December 2006, Russia stopped the import of rice from Pakistan for not meeting food safety standards. Chairman of the Pakistan Rice Exporters Association, Chela Ram Kewlani, said that Pakistani rice exporters needed to be very careful in choosing and packaging all rice for export.
Phytosanitary concerns are related to the potential introduction of pests, diseases, or contaminants that could harm domestic agriculture or pose risks to human health. Some specific phytosanitary concerns that Russia is having regarding rice imports from Pakistan include: Pest infestation, plant diseases, chemical residues, weed seeds and quality standards.
Pakistan is known for its high-quality Basmati rice, which is in demand internationally for its aroma, flavor, and long grains. Russia, being a major consumer of rice, particularly imports Basmati rice from Pakistan to meet its domestic demand.
Russia Imports from Pakistan of Rice was US$2.43 Million during 2021, according to the United Nations COMTRADE database on international trade. This plays a role in fluctuating the trade numbers of Pakistan. Pakistan earns significant revenue from rice exports, with Russia being one of its major export markets. A ban on rice imports by Russia would lead to a sudden decrease in export earnings for Pakistan’s rice industry, resulting in financial losses for rice growers, exporters, and the economy as a whole. The ban on rice imports by Russia could exacerbate Pakistan’s trade imbalance, as it would lose one of its significant export destinations. This could put pressure on Pakistan’s foreign exchange reserves and balance of payments.
International trade plays a crucial role in Pakistan’s economy, contributing to economic growth, employment generation, and integration into the global economy. Efforts to address trade-related challenges and promote export-led growth are key priorities for Pakistan’s economic development strategy.
The import of rice from Pakistan to Russia strengthens trade relations between the two countries and provides an opportunity for Pakistani rice exporters to tap into the Russian market. The exact volume and frequency of rice exports from Pakistan to Russia may vary over time depending on factors such as market demand, pricing, trade regulations, and geopolitical dynamics.
To address the conflict between Pakistan and Russia over phytosanitary conditions of rice exports, Pakistan should establish a joint technical working group comprised of experts from both countries’ agricultural and phytosanitary agencies. This group could collaborate to assess the phytosanitary risks associated with Pakistani rice exports to Russia and develop appropriate measures to address any concerns.
Overall, the trade of rice between Pakistan and Russia contributes to bilateral economic cooperation and benefits both countries agricultural sectors. Efforts to address challenges include improving trade infrastructure, enhancing export competitiveness, and negotiating trade agreements to expand market access.