Pakistan and Sri Lanka are facing a dispute over basmati rice exports, as Pakistan has been unable to fully utilize its 6,000-tonne shipments quota under a free trade agreement with Colombo.
The inclusion of the Indian basmati variety 1121 in the list of Pakistan basmati with Colombo has become a point of contention. Sri Lanka has been delaying the clearance of Pakistan's rice consignments, suspecting adulteration. Pakistan authorities argue that their rice consignments are certified by three different organizations.
The dispute between the two nations is centered around two issues: Sri Lanka's lack of confidence in Pakistan's testing protocols and the lower prices of the fragrant rice exported to Colombo, raising suspicions of adulteration. Trade sources suggest that India should take advantage of this dispute to make further headway in the global market, particularly in the European Union and the Gulf. Basmati exports from India have already increased during the first half of the current fiscal year.