New Delhi, June 01: It is a wake-up call for India as Pakistan has already taken the lead in negotiating with the European Union (EU) over the region's proposed withdrawal of tariff concessions on the world's costliest rice, basmati, traders said here. "As part of proposed restructuring of its rice import regime, the EU is considering withdrawal of the 250 Euros a tonne tariff concession on basmati imports. In light of the development, Pakistan is already holding talks with EU and India too should make similar moves", market sources told.
They said Pakistan has even tabled an alternative proposal on duty abatement before the EU which is now under consideration.
The committee on agriculture and rural development (card) in the EU has recommended to the European Council repeal of 'Headnote 7' on rice import system.
Under the Headnote 7, higher priced rice is subject to lower duty and vice-versa. It has manifested in a 250 Euros a tonne tariff concession on basmati.
Since Pakistan is also a basmati exporter, its commerce minister on a visit to Brussels and the UK recently, has tabled a proposal on duty abatement on the commodity while India is yet to do so, they said.
An option before India is to demand fair access for its milled basmati in the EU since the region at present provides tariff concessions only on brown rice.
Sources said the European Council is considering giving mandate to the European commission on the card recommendations and will decide on the issue by June 10.
Bureau Report