The Rice Exporters Association of Pakistan has expressed serious reservations on the recent news being published
Lahore: The Rice Exporters Association of Pakistan (REAP) has expressed serious reservations on the recent news being published regards farmers/ millers demand of Government via the TCP buying Rice to stabilize the Paddy/ Rice Prices, as an effort in the wrong direction.
REAP said such efforts in the recent past by PASSCO and TCP are prime examples where the State Objective of supporting the Farmer was not met and in return the State not only lost valuable monies in billions but due to intervention by PASSCO and TCP the markets were inflated artificially resulting in huge loss of export earnings.
REAP firmly stands in support of the Farmers and would like to see Governments effort in the right direction to directly support the farmers.
REAP would support Govt. to provide financial assistance in the shape of subsidies for buying fertilizer, reduction in electricity tube well bills and purchase of seeds etc. to the small farmers having land holdings of 10 acres and less. Such programme will not only help the farmer directly but will also avoid any distortion on the market and supply of rice for exports.
While stating its reservation REAP again reminds all concerned authorities and the economic managers that owing to recent devaluation of Indian Rupee versus the dollar by a good 20% during the last 4 months; lifting of ban on export of non basmati rice and releasing 2 million tons of non basmati rice for export and 20 to 30 % decrease in the basmati and non basmati rice export prices , Pakistan Rice is already facing tough competition by Cheap Indian Exports, and at this important time, if the Govt. proceeds with any Intervention it will be contrary to Governments Pledge to the Rice Exporters where REAP has achieved export targets of over usd2 Billion now on a consistent basis.
Such an effort in last 2 x such programmes, where TCP and PASSCO purchases primarily benefited BIG HOARDERS/ TRADERS, not only leaving the small farmer benefit objective unfilled, the State carried these stocks at exorbitant bank mark ups cutting of exports targets by a good US$ 500 million and REA P fears any intervention at this time will put a halt on rice exports causing huge losses in foreign exchange earnings upto US$1 billion and a expensive carry over stock in the country.
A typical sale window for Pakistan is between Oct’11 through to Feb’12 after which the 2 largest exporters Thailand and Vietnam harvest their main crops combined with the 2nd Indian Crop, REAP fears any intervention at this time will shut off sale opportunity and disrupt rice supplies for exports, and leave Rice Exports Stagnant .
For more information, contact:
Rice Exporters Association of Pakistan
405/421, 4th Executive Floor, Sadiq Plaza, The Mall, Lahore – Pakistan
Tel: +9242 36280146, 36280195 and 36374020
UAN: +9242 111-555-992
Fax: +9242 36280196