Pak, India agree to share ownership of Basmati rice

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By Hamza Ameer
Islamabad, June 14 |
In a rare agreement between two arch-rivals India and Pakistan, which have a history of long-time rivalry with disputes on every front from sea to land, exporters from both sides of the border have mutually agreed to share the ownership of the regions prized Basmati rice, a solution considered the most workable to reach the European markets.

“There has to be a joint ownership, which is a logical solution to the dispute,” said Faizan Ali Ghouri, a Pakistani rice exporter.

The fight between India and Pakistan over the claim of the origin of Basmati rice has a long history, as this variety is produced largely on both sides of the border.

India has filed a claim in the European Union (EU) seeking a geographical indication (GI) tag for Basmati rice. Pakistan, on the other hand, has opposed India’s claim and has filed a request for a protected GI tag.

“There is no logic in both countries’ claim for the sole exclusivity of Basmati rice. Although its origin is Pakistani Punjab, it is grown in both sides of the border. Therefore, a joint ownership is the only viable solution to the long-standing dispute,” said Ghouri.

“The EU buyers also prefer joint ownership of the rice variety as they want to keep both New Delhi and Islamabad on board in terms of commodity exports,” he added.

Ghouri’s views were seconded by Ashok Sethi, the director of Punjab Rice Millers Export Association in India, who also suggested that both the countries should jointly protect the Basmati heritage.

“India and Pakistan are the only two countries which produce Basmati in the world. Both should jointly work together to save the heritage and protect the GI regime of the rice,” said Sethi.

It is pertinent to mention that EU had recognised Basmati as a joint product of India and Pakistan in 2006.

Both Pakistan and India make good money from their respective exports of Basmati rice. Pakistan annually earns $2.2 billion, while India makes about $6.8 billion from Basmati exports.

“Both countries export Basmati rice. India, in its application to the EU, has never stated that it is the only Basmati producer in the world,” insisted Vijay Sethi, a New Delhi-based exporter.

While both sides still have their own historical details on the origin of Basmati, it is rare to see two arch-rivals, who are not ready to come to the table for talks until their demands are met, come down to a mutual agreement.

Pakistan demands India to reverse its August 5, 2019 decision that changed the special status of the erstwhile state of Jammu and Kashmir and bifurcated it into two Union Territories by abrogating Articles 370 and 35A, as a benchmark to make way for dialogue and address other issues between the two countries.

India, on the other hand, demands Pakistan to stop cross-border terrorism and take decisive action against terror elements, which it claims, enjoy the support of the establishment.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered with modest gain against the resilient global cues. Throughout the week, Sensex traded in a narrow range following an uneven move. Sensex ended at 54884.66 gaining 558 points or 1.03 percent while Nifty settled at 16352.45 with 86 points or 0.53 percent on a weekly basis. While Banknifty ended at 35613.30 levels with strong bounce with an upside of 3.90 percent in a week.

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INDIA VIX has cooled off during the week with 7.01 percent and has settled at 21.48 levels. Investors and traders may watch out key events such as the RBI meet in the second week as well as the US Fed meeting likely to be on 14-15 June for monthly expiry. As corporate results are likely to end soon stocks would expect less volatility in upcoming days. In Nifty stocks, HDFCLIFE gained 9.61 percent while DIVISLAB shed 18.41 percent in a week. Sectorally Nifty Finance saw the highest gains of 4.32 percent followed by the Nifty Auto with 3.26 percent. On the flip side Nifty Pharma, Energy, Realty and PSE lose more than 3 percent each on a weekly basis. However Midcap gained 0.77 percent while Smal lcap dropped by 3.42 percent.

Technically, Nifty has formed a bullish candle on the weekly chart with a long tail suggesting strong support around 15900 levels, while on the upside 16800 may act as strong resistance. Index has taken support from the previous horizontal line & closed above 21-days Simple Moving Averages that indicates further pullback rally in the near term.

Indicators such as RSI remained in the neutral zone while MACD suggest some positive cross over observed in daily time frame suggest some sign of reversal. Coming to the OI Data, on the call side the highest OI witnessed was 16500 followed by 16800 strike prices while on the put side, the highest OI was at 16000 strike price. Overall, Nifty is having support at 16000 mark while on the upside 16500 followed by 16750 may act as an immediate resistance. While Bank nifty has support around 34300 while resistance is placed at 36800 on weekly chart.

Om Mehera
Research Associates
Choices Broking

Souce: Choice India

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