RIYADH, 24 May — Pakistani exporters have accused their Indian counterparts of mixing rice from the two countries with the collusion of dealers in Dubai and re-exporting to Saudi Arabia and other Gulf markets. The Pakistanis claimed the dealers also changed labels on Pakistani rice bags to give the impression that they originated from India.
The allegations were made during a meeting of Pakistani rice exporters’ delegation with Saudi importers at the Riyadh Chamber of Commerce and Industry. The businessmen backed their claim by citing figures which showed that India’s rice exports do not comply with its output volume.
The Saudi traders told the Pakistani delegation that Indian rice had gained great success in the local market over Pakistani rice, which is not popular due to failures in marketing. They said Pakistani exporters were mainly to blame for their dwindling market share.
Pakistani traders did not deny their setback in marketing their produce, but reiterated their charges against Indian traders. They also said the Indian move had resulted in a sharp increase in the prices of Pakistani rice in Saudi Arabia. Pakistani rice prices are normally much lower than that of the Indian variety, they added.
The Pakistani delegation is currently visiting the Kingdom with the aim of increasing their market share. They held talks with Saudi importers in Riyadh, Jeddah and the Eastern Province.
Pakistani rice exports to the Kingdom fell from 75 percent of the country’s total imports in 1970s to 14 percent currently. Banking on the situation, Indian traders boosted their exports to the country. The visit of the Pakistani delegation coincided with an increase in the country’s rice production and introduction of new varieties.
Saudi Arabia imports 800,000 tons of rice annually. The Pakistani delegation believes that they can retain the market by improving quality and price levels.
Rice is among eight major Pakistani products exported to the Kingdom.
