KARACHI-In a development for Sino-Pak trade and agricultural cooperation, Pakistan’s Dynamic Engineering and Automation and China’s Qingdao Lulu Agri Equip Co Ltd signed an MoU here to carry out a project to processing chilies in Pakistan for export to China.
The signing ceremony was witnessed by Ghulam Qadir, Commercial Counsellor, Pakistani Embassy in China, Qamar Zaman, Joint Secretary, Pakistani Ministry of Commerce (Agri Division) and Wang Zihai, Pakistan’s Hon’ble Investment Counsellor to China, China Economic Net (CEN) reported on Sunday. With China currently being the world’s largest pepper producing and trading country, the MoU opens up new avenues for Pakistani enterprises to tap into the vast Chinese market. It also provides a platform for research collaboration and exchange programmes between the two companies, fostering mutual learning and growth.
Under the terms of the MoU, the two companies will jointly develop and coordinate work plans for the establishment of chilli production workshops, personnel management and technology transfer. At the end of last month, Chinese Vice Premier He Lifeng and former Pakistani Prime Minister Shehbaz Sharif jointly witnessed the signing of a protocol on phytosanitary requirements for the export of dried chilies, showing the huge potential of Pakistan chili and provides a broader market opportunity for chili-related enterprises in the two countries. Li Zhimin, Chairman of Qingdao Lulu Equip, who participated in the first FoodAg held in Karachi from August 10 to 12, exchanged views with various chilli companies from Pakistan’s major chilli growing cities, including Karachi and Lahore, and reached cooperation intentions with six Pakistani companies.
Founded in 2015, Qingdao Lulu Agricultural Equipment Co Ltd is a diversified enterprise that integrates research and development, manufacturing and import and export of agricultural machinery and equipment. The company, which created the first chilli handle removal machine and sells well in China, exports its products mainly to India, and began exporting chilli processing equipment to Pakistan four years ago. India has been China’s largest source of imports for four consecutive years. Li pointed out, “Pakistan has similar geographical advantages of growing chilies as India, but the quality and yield of Pakistani chilies have relatively fallen behind due to the aging of the varieties and backward technology.” “As more and more Chinese enterprises like Lulu Equip invest in the variety improvement, mechanical planting and scientific processing of Pakistani chilli, it will provide a more stable and convenient trade environment for Pakistani chili export to China and promote the growth of bilateral trade,” Li added.
MOU signed for cultivation 
of red chilies under CPEC
Chinese leading food firm Litong Food signed a memorandum of understanding with Guard Agriculture Research and Services (GARS) for cultivation of red chilies in Pakistan and subsequent export to China under CPEC framework, Gwadar Pro reported on Saturday. CEO GARS Shahzad Ali Malik said that under mutual agreement, the criteria for selecting seed production land shall consider the underlined factors such as long-term feasibility, land and water availability. 
He said in a phased program a total of 200,000 acres of land will be brought under chili cultivation. “Joint efforts will be made to promote Chili seed breeding, Chili crop production and research with a focus on developing high-quality Chili seeds suitable for the local agricultural conditions and crop production for Litong as per requirement,” the company head added. Shahzad Ali Malik said it will boost chili export to China and improve the profitability of chili growers. He said Pak-China collaboration in agriculture will be further strengthened in the days to come. He said Guard Agriculture Research and Services along with Litong and Longping are also exhibiting together at International Food and Agriculture expo, Karachi.