FPCCI urges govt to grant status of industry to rice sector

KARACHI: Federation Pakistan Chamber of Commerce and Industry (FPCCI) supporting the demand of Rice Exporters Association of Pakistan (REAP) has urged the federal government to give the status of an industry to the rice sector immediately and provide same facilities being provided to five other export-oriented industries.

While, chairing the 2nd meeting of the FPCCI Standing Committee on Rice, Convener Rafique Suleman said that rice is the largest export sector among commodities in Pakistan and earning more than two billion dollars annually. The sector can earn more foreign exchange for the country, if the federal government gives it the status of the industry and provides power to it at concessional rate. “If the government follows the recommendations of FPCCI, all the economic indicators can improve and economy will come on right track,” he added.

He said that despite the promise, the government has not provided financial assistance to the flood-affected rice owners, which faced massive loss during the rain and flooding. If a farmer does not have money, how he will plant rice, wheat or any other crop, so the government should fulfil its promise immediately, Suleman demanded.

Senior Vice President of Federation Chamber Suleman Chawla, Vice President Shabir Mansha Chura, Chairman Rice Exporters Association Chela Ram Kewlani, President Lower Sindh Rice Mills Association and Joint Secretary Sindh, Balochistan Rice Mill Association Farooq Ahmed Chhipa, Javed Jilani, Faisal Anis and other members were also present.

Suleman said that the government of Sindh has made it clear that 70 percent of the rice crop in Sindh has been affected due to rain and flooding. The exports of non-basmati rice have decreased by 15 percent, while as per millers’ estimates the rice crop has been affected by 30 percent. This shows that government’s figures of crop losses are wrong, he said.

He said that the rice crop is bumper in Punjab and Basmati export will be more than last year in term of value and volume.

Rafique Suleman said that some 170,774 metric tons of basmati rice worth $181 million was exported in October 2022 and some 725, 662 metric tons non-basmati rice worth $363 million was exported.

He mentioned that currently the exchange rate is volatile and there is massive difference in the Interbank and Open Market rate. Dollar is being trading at Rs 225 in inter-bank market and Rs 250 in open market. The silence of the government on the difference of 25 rupees is surprising, he said.

Senior Vice President of FPCCI Suleman Chawla said that rice is the largest commodity exported from Pakistan, if rice exporters pay full attention to the Chinese market, they can enhance the exports. He said that FPCCI is fully supporting the REAP demand for the industry and all possible efforts will be made to facilitate the rice exporters.

Suleman Chawla said that a rice festival will be organized in FPCCI after the Eid. He demanded that the government to provide cheap electricity to the rice sector.

Chairman REAP Chela Ram said that the supply of gas to rice industry is stopped and exporters are compelled to invest for self power generation to keep the mills operational. But when the gas is not available, how the rice factories can run and how the exports will be increase, he questioned

He said that there are billions of rupees funds in the Export Development Fund, but neither this money is getting to the rice sector nor has any representative of REAP in the EDF. He demanded REAP’s representation in the EDF board. He also expressed concern over the ongoing economic situation and urged the political parties to work for the country and economy to overcome from this crisis. He also raised question on the statistics of the crop and said that there is no any organization in the country that can provide accurate information of crop productions. Chela Ram said that the Philippines, Malaysia and Indonesia are the emerging markets for rice exporters, but the same problems are happening in Indonesia. “Government of Pakistan should urge them to buy rice from Pakistan as we are importing edible oil from Indonesia,” he suggested.

Sindh Rice Mills Association Farooq Ahmad Chhipa said that a number of rice mills are closed due to floods; however, the amount is being collected for the fixed load of electricity from the closed mills. In addition, income tax department is sending notices. He said that until the rice sector does not get the status of an industry, cannot get respect.

Copyright Business Recorder, 2022