The Basmati Growers Association on Monday demanded of the Rice Exporters Association (Reap) to prefer retail marketing and branding of Basmati rice in the developed countries instead of bulk sales to the Middle East, where others would get benefit instead of the country.
Talking to Business Recorder, BGA President Hamid Malhi said Basmati rice farmer is worried as prices continue to stagnate below Rs 1500 per 40-kg for Basmati paddy since 2008. The higher cost of production is causing decrease in production. Against odds of a drought situation and with the govt increasing the price of HSD, the Basmati growers are having a tough time with no relief in sight.
BGA's interests are long-term protection of the heritage of Basmati with quality and origin assurance to consumer and transparency in trade for an improved income for the farmer and all the stakeholders. Malhi blamed REAP for 15 percent decline in Basmati exports last year whereas India's Basmati exports increased by threefold during the same period. "Why are we lagging behind and dumping nearly 75 percent of our Basmati exports in the Middle East, especially Dubai?"
Out of 108 countries to which Basmati rice was exported above 10,000 tons was only to 15 countries and below 1,000 tons was exported to 67 countries, he added. He pointed out that only members of the Reap are allowed to export rice which is the major cause of stagnation in rice exports. "Why can't a member of any Chamber of Commerce & Industry or any other registered organisations export rice? He questioned.
Malhi said at first the Quality Review Committee is taken over and then Reap's membership is made compulsory. "Why shouldn't the QRC be totally independent of any interference?" Regulation is the role of the government and not private sector trade bodies. Transparency has to set in. What are rice exporters afraid of? QRC would develop integrity and acceptance internationally, only if it is free from the interference of those it intends to inspect or monitor. Had EU been the target, Basmati exports could not have been just limited to 44,000 tons to EU and only 14,000 tons to the US in 2010-11, he said.
The BGA president said Reap was registered initially by a small group of rice exporters, its membership gets growing on the crutches of govt SROs, which they fear if withdrawn would make it unsustainable, even after a span of 14 years of existence. All 1,500 rice exporters surely do not export Basmati rice and of the total number of Basmati rice exporters only a very few export Basmati quantities above 10,000 tons a year.
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