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Warning that Pakistan's rice exports will decline this year, representatives of the rice sector are demanding immediate industrial status and restoration of gas connections to mills along with the subsidized tariff of Rs 19.99 announced for the sector.
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 paper 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 of 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.
Source:
Online/KSU
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