Pakistan Official Endorses Oil-for-Rice Swap Deal with Iran

January 13, 2012 (By Oryza News)
 

 

The chief of Pakistan’s Trade Development Authority of Pakistan (TDAP) has supported the oil-for-rice proposal with Iran.
 
The TDAP chief endorsed the barter proposal at a dinner hosted by Rice Exporters Association of Pakistan (REAP). REAP presented a medal to the TDAP chief in recognition of his contribution towards increasing rice exports from $300 million to $2 billion in less than 10 years. The TDAP chief also estimated that the country’s target of $2.5 billion rice exports would be reached by June. His endorsement of the swap deal with Iran comes as reports said that Pakistan could be heading towards another energy crisis after the one it faced last month due to low fuel supply.
 
Iran is a major importer of basmati rice, an aromatic variety that is produced mostly in India and Pakistan. But the country is facing increasing alienation by the world over its alleged nuclear program. On New Year’s Eve U.S. President Barak Obama signed a bill into law which empowers U.S. authorities to take action against countries with financial dealings with Iran. The fresh and tighter sanctions have hit Iran hard with even loyal markets in Dubai refusing to do business transactions with Iran. Iran’s rice imports from India have been affected as a result of sanctions.
 
In 2011, Iran produced around 1.5 million tons of rice, against a consumption around 3 million tons. Last year, the ending stocks of rice in Iran are estimated to be around 496,000 tons. While Iran is may have to face rice shortage in the coming months, the country is also a major supplier of the energy-starved Pakistan so Pakistan is keen to complete the oil pipeline project with Iran, despite sanctions. Pakistani President Asif Ali Zardari said today that the construction of natural gas pipeline from Iran will be expedited to avoid another energy-crisis that the country faced in December. He said, "We will not limit our commercial relations with any country because of the political whims of any outside power."
 
Pakistan exports about 2 to 4 million tons of rice a year.  
 
 
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