Pakistan and China are set to enter into an agreement for a joint venture for export of dried red chilli to China in the wake of the recent memorandum of understanding (MoU) on protocol of phytosanitary signed in Islamabad during the three-day visit of Chinese Vice Premier He Lifeng.
The $30m (around Rs9bn) joint venture is likely to be signed under the business-to-business mode between the Litong Foods of China and the Guard Agricultural Research & Services of Pakistan next week.
In the five-year agreement, Guard will produce at least 15,000 tonnes of sun-dried red chilli under contract farming for the Litong Food, which will transport the produce to its value-addition plants in China before marketing it in the local market there.
“In the first year, 5,000 tonnes of sun-dried chilli will be produced as we wish to tread cautiously on the new crop for our company though Litong is offering to pick 15,000 tonnes consignment from us for export purposes,” says Guard’s Chief Executive Officer Shahzad Ali Malik.
