China ignores Pakistan's concerns, approves Indian basmati imports - Times of India

Though New Delhi and Beijing signed the basmati protocol 2006, it has taken China over five years to give the import green signal because the Pakistan factor played a role in its thinking.

The author has posted comments on this articleSaibal Dasgupta, TNN | Apr 23, 2012, 10.10PM IST

BEIJING: China has made a rare trade move opening up import channels for Indian basmati rice although it might hurt exports of similar produce from its close ally, Pakistan. According to sources, this is a politically sensitive move that suggests that Beijing is no more willing to walk the extra mile to protect Pakistan's interests.

China has been importing Pakistani aromatic rice for the past few years. Islamabad is known to have been persuading China not to allow Indian basmati because it will affect its already small export basket. What is more, Pakistan has begun to push China to buy more of its cotton yarn after New Delhi slapped a partial ban on cotton exports.

Though New Delhi and Beijing signed the basmati protocol 2006, it has taken China over five years to give the green signal because the Pakistan factor played a role in its thinking, sources said.

The first Chinese delegation to visit India to examine the product for quarantine purposes was in 2009. Indian officials have earlier complained that China's approval process is very time consuming and it takes years to obtain approval for one agriculture product.

"It is a hard won achievement. We expect this decision will lead to opening up the Chinese market for other agricultural goods," Nagraj Naidu, counselor (trade and commerce) at the Indian embassy in Beijing told TNN. "We hope Indian companies use the opportunity to build brands and develop the market."

Despite political backing, Pakistani basmati suppliers have not been able to make a dent in the Chinese market because of failures at the branding and marketing areas. The challenge lies in taking the product into the homes of upper class Chinese and expatriates instead of focusing only on the restaurant industry, sources said.

"India has a strong brand as the producer of 70 per cent of world's supply of basmati," Naidu said. A recent convention of the food and hospital industry in Shanghai evoked strong response from buyers when freshly cooked Indian basmati filled the auditorium with its aroma, he said.

China buys rice from Vietnam and Thailand in vast quantities. Though the Chinese market for rice is a vast one, Indian can hardly meet the demand because it has little surplus in the non-basmati category of rice, officials said.