Rice Exporters Association of Pakistan (REAP) has urged the government for enhancing the term of export refinance facility (ERF) scheme given to the rice exporters from 180 days to 360 days, enabling them work smoothly and with peace of mind.
'Due to outbreak of coronavirus in certain countries, our members are facing issues of delayed shipments, delayed payments, cancellation of their future export orders as well as substantial increase in the cost of freight,' said REAP chairman Shahjahan Malik in a letter addressed to the Adviser to PM on Commerce Abdul Razzak Dawood.
Shahjahan further said that these issues are being faced particularly in China, Saudi Arabia, UAE etc. Keeping in view these issues the term of the ERF should be doubled to enable the Pakistani rice exporters to repay the finance obtained from the banks in time, he added.
Talking to Business Recorder here on Thursday, he said that terms of both type of export refinance facilities should be enhanced. Under ERF-I scheme; exporters obtain finance for a specific consignment while under ERF-II, exporters are provided finance for one year and they have to double their past export figures in that specific time.
Malik said that they are receiving more export orders this year because of panic buying in the wake of coronavirus. These are slightly 10 per cent higher but to manage these demands exporters are in need of finance. He was of the view that the textile sector is given all the incentives and facilities but rice which is second highest foreign exchange earners for the country is always ignored and neglected.
To a question, REAP chairman said that the picture of rice export is very rosy as during the first eight months of current fiscal year, exports have shown 15 per cent hike, especially in export of Basmati. However, he regretted that figures of production of rice crop are the same as was in the corresponding period so efforts have to be made for production of more export surplus.
Replying to another query whether ban on transportation would hit the rice exports, he hoped that movement of essential items would not be banned as it may also create shortage of commodities in the market for domestic requirement.
He said that they had met about 10 times to the adviser to the PM on Commerce Abdul Razzak Dawood to discuss various impediments blocking growth of rice exports from Pakistan. "We are aiming to double the rice crops in next five years but it will need full backing by the government and producing more export surplus,' Shahjahan Malik concluded.
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