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Pakistan to increase import of Indian vegetables
1/3/2012 10:43:41 PM
Will there be inflation in the prices of vegetables, which have dipped during the last one month, in the Indian markets if Pakistan begins to import fresh vegetables in bulk ? This question seems to bother people in India following latest decision of Islamabad to clear import of 16 vegetables from India.The import list has been expanded in order to control spiralling vegetable prices. Latest reports said that Islamabad has given clearance to the import of 16 vegetables which includes cauliflower, cabbage, carrot, cucumber, green chillies, bitter gourd, capsicum, radish and ginger fresh. These items were to be imported from the Wagah border. In fact Pakistan has shown preference to restricted trade with India and that has been the reason that Islamabad is yet to grant Most Favoured Nation (MFN) status to India when New Delhi had granted MFN status to Pakistan in 1996. As a result of restricted trade with India Pakistan has been suffering a loss of several billion rupees per year. It is so because against the requirement of 6,000 items Pakistan has been importing not more than 1900 items from India.
Surprisingly some of the Indian items are available in the Pakistani markets and those items are imported from Dubai and other Gulf nations at higher prices. Gradually it has dawned on Islamabad that restricted trade practices with India was not profit able for Pakistan and at one stage three months ago Islamabad had decided to grant MFN status to India.Before it could implement its decision the Army and the ISI besides the extremists in Pakistan intervened and forced the establishment led by Asif Ali Zardari to keep its decision under carpet. Islamabad has devised a formula that could help its trade practices without giving any provocation to the Army. It has decided to increase imports from India and also increase the list of items that are imported by the traders in Pakistan occupied Kashmir from Jammu and Kashmir. Indications are that the import export list under the cross LOC trade in Jammu and Kashmir could be enlarged in order to promote trade links between the two sides.
Reports said that vegetable prices have been soaring in Pakistan occupied Kashmir and people could heave a sigh of relief if Muzaffarabad agreed to import a large number of items from Jammu and Kashmir. Unfortunately vegetable growers in Jammu and Kashmir cannot export fresh vegetables in large quantities to occupied Kashmir. It is so because Jammu and Kashmir banks on import of large quantities of vegetables from the plains. Rough estimates reveal that between 70 and 80 per cent vegetable requirement of people in the border state is met from imports. The state imports fresh vegetables from Punjab, Haryana, HimachalPradesh and Delhi and some items are imported from Rajasthan too. Hence if Pakistan agrees on including fresh vegetables in the list of items to be imported from Jammu and Kashmir the vegetable growers in the state may not be able to oblige the other side. Hence the state Government needs to formulate new policies which could encourage growers in increasing the production of vegetables. Not only vegetables but other items like spices, dry beans, fresh and dry fruits. The state Government needs to take up with New Delhi the issue of persuading Islamabad to allow handlooms and handicrafts in the items that the other side wishes to import from Jammu and Kashmir.
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