The Rice Exporters Association of Pakistan (Reap) has urged the government to allocate five percent of research and development fund to companies performing function to mobilise resources to develop varietal preference for new markets and develop contractual farming in new areas in Pakistan having capacity of rice growth.
This has been demanded by the association in its proposals for budget and trade policy for 2008-09. Association sources told Business Recorder here on Saturday that through this method companies would be re-contributing back into the economy of Pakistan and this should be performance-based assistance only.
Reap said that rice exports might reach over $1.5 billion by the fiscal year-end. However, the expected growth by 2010 of this sector, without any concession, is expected to reach $4 billion if inputs and outputs are properly measured at all stages--from seed to the proper recording of the entire rice product.
The proposals said that seed sowing and relevant information pertaining to each variety must be initiated and broadcast by April 15, 2008, one month before the seed sowing season commences. Measures should be taken to enhance area under cultivation, and varietal crop management system be determined and exercised. Inputs like DAP, insecticides, pesticides may be distributed at control rates to farmers under a mechanism pre-determined by way of production of proof of land holding under them or any other pre-assessed requirement basis.
Reap expressed concern that farmers here were using wheat harvesters for rice, causing a colossal loss by means of rice breakage. It demanded that import of rice harvesters be allowed, duty-free, from any country of origin. Government funding or financing from the Export Development Fund (EDF) be allowed in case Reap is allowed to develop a farming company under its supervision for the purpose. Harvesting of immature paddy should be discouraged with punitive action, and it suggested that Pakistan can adopt Indian strategy in this matter because of common culture, values and ethics.
It also suggested that information on proper harvesting methods and its importance must be added to the awareness programme. Import and purchase of locally developed paddy dryers must be encouraged with relief in taxes, levies and duties to encourage adaptation of same by millers all over Pakistan, it added.
The association also demanded an institute to train and develop skilled workers and management trainees for milling and quality control in the respective rice related fields.
It also demanded that mark-up on rice commodity should be reduced because of problems faced by exporters in fulfilling commitments because of non-availability of electricity and all other related factors. It also demanded setting up of an 'Export Credit Guarantee Fund' by the State Bank of Pakistan (SBP) in order to ensure quantum leap in rice export. This fund should cover only country risk and bank ranking and provide cover to all exports from Pakistan made against L/Cs.
It also said that genuine exporters having stocks against their export must be obliged by banks and their stock should be treated as cash collateral and helped by banks.
Regarding electricity problems, Reap suggested that duties on gas generators be abolished for its members while NOC for gas connection be allocated to rice export entities on priority basis. Terming the final tax at the rate of 1.5 percent as high, it suggested that it be reduced to 0.75 percent.
Comments
Comments are closed.