ISLAMABAD: Warning that Pakistan’s rice exports this year will fall, representatives of the rice sector are demanding that they be given industry-status immediately along with the announced subsidized tariff of Rs 19.99 for the sector as well as the restoration of gas connections to mills.
Speaking at a presser, after a high-level meeting with officials from the commerce ministry, rice exporter association president Chela Ram Kewlani and other exporters warned the government in case of no timely action, the exports of rice will fall short of last year’s export proceeds of $2.5 billion.
The association claimed that rice exports have the potential to reach $5bn in the next couple of months if the government provides support. Mr Kewlani said that Finance Minister Ishaq Dar’s claims to facilitate exports only remain on papers for sectors like rice. He alleged that Mr Dar only supports bigger industries and has no soft corner for the rice sector.
“We are not demanding subsidies for exports”, he said, adding that the finance minister or commerce minister has no time to listen to the problems of Pakistan’s second largest commodity export sector. Mr Kewlani and his Team in Islamabad discussed various issues including the declaration of industry status for the rice sector, subsidized tariff rates for rice mills and other matters related to rice export trade with the secretary of commerce.
Mr Kewlani further said that the rice sector export development fund (EDF) amounting to Rs 12 billion is stuck with the government. “We demand that we spend this amount on the growers to improve seeds and cultivation to increase yield”, he said. The EDF funds are for the export sector and they should be used for export facilitation.
Chela Ram said that despite the government’s announcements, the rice sector is not getting units of electricity at Rs 19.90. The rice sector is not being given the status of an industry, which is causing numerous problems, he added.
“Dollars are not available and this is causing serious problems. The containers are piling up and businessmen are unable to open LCs. We businessmen are paying the price for differences between political parties”, he remarked. There are eight districts in the world whose Banaspati rice is famous, he said, adding six districts are in Pakistan and two in India.
Muhammad Samiullah Former Chairman REAP said that export from the rice sector will increase in the coming month. In the first five months, the export of rice dipped by around 10pc. Mr Samiullah said that basmati exports will revive in the next five months.
Mr Samiullah warned the government to take out protests in support of growers in case the government did not consider rice millers’ demand. He said housing schemes on GT Road in Pakistan are eating up this rare earth in six districts suitable for the cultivation of the world’s best basmati rice.
He said no action was taken. The country will become an importer of rice, especially basmati rice. “No government official is ready to sit down with the people of the rice sector to resolve our problems”, he lamented.
We are not looking for export subsidies, then goes onto say want cheap electricity and subsidised inputs.
Beggars belief
Dragon Fruits are huge and spherical, with leathery red or yellow skin. The fruit’s flesh is white or pink, with little black seeds scattered across the surface. Dragon fruits are sweet and juicy, with a flavor similar to a cross between a kiwi and a pear.
Fortunately or unfortunately, Rice is the only major crop in Pakistan where govt does not give any floor prices as is the case, especially in Sugar, Cotton and Wheat. Govt interference has destroyed the farm economics of these 03 sectors whereas in Rice, where govt does not provide any floor price, excess production has enabled export of this commodity. The govt support has also created a circular debt in food industry whereby Punjab Food, TCP, etc. need to borrow from banks to purchase these commodities, other than rice. Govt needs to get out food subsidy and let the market dictate what type of crop farmer will grow to maximize profit.