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Issues & Analysis
Pakistan may join proposed
rice export countries body
LAHORE-Pakistan, one of leading
rice exporters of the world, has expressed interest in joining
proposed "Organisation of Rice Exporting Countries (OREC),
during the annual meeting of foreign ministers of the
Association of Southeast Asian Nations (ASEAN).
World leading rice exporting countries are consulting each
other for establishing OREC, on the pattern of OPEC, to avoid
price downward trend in global exports. The aim to establish
OREC is to co-ordinate each other on the issue of rice prices,
keeping in view supply and demand in the international market.
The step was initiated especially after the recent glut in the
international rice market.
In this connection, Thailand and Vietnam, the world's largest
and second-largest rice exporters, jointly taken various steps
to establish a "rice pool" to avoid price undercutting on
global exports. Initially, It does not appear successful, but
the concept of a "rice cartel" continues. In this regard, one
possibility discussed is the establishment of rice stockpiles
that would reduce the amount of rice available on the world
market.
Thailand also recently invited India to join with Vietnam and
itself as pioneers in the formation of an Organisation of Rice
Exporting Countries (OREC, the acronym is a play on OPEC, (Organisation
of Petroleum Exporting Countries). Thai officials stated that
OREC would also welcome rice exporting countries like China,
Pakistan, and Bangladesh.
India and Pakistan expressed interest in joining OREC during
the annual meeting of foreign ministers of the Association of
Southeast Asian Nations this week. Meanwhile, when contacted,
several rice exporters welcomed the move saying that joining
hands with the main rice exporting countries under one banner
would help resolve many trade-related issues.
Mian Shakeel Ahmad said that the formation of OREC would
definitely help the rice exporting countries to mutually solve
many issues. He said, however, it would be difficult to
balance the demand and supply mechanism in this case to ensure
price stability.
Zahid Malik said that such forum could only focus on the
export of coarse varieties as all major rice producing
countries were exporting these varieties such as Irri. He said
that owing to the fact that Pakistan dominated the export of
fine rice varieties including basmati and super, we have no
need to join the rice pool. He said that India was the only
competitor of Pakistan in the field of fine rice varieties.
But, he added, we are far ahead form India in this field due
to aroma and size of the basmati and super rice.
To a question about the price control, Zahid Malik said that
the supply of rice in the international market could not be
manipulated unless a separate body were set up for absorbing
the stock from the market. July
27
Courtesy The Nation
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