The Rice Exporters Association of Pakistan (Reap) has demanded of the government to accord 50 per cent Freight Subsidy, Export Subsidy and relief in duty and taxes pertaining to rice export to Bangladesh.
In a letter written to the Ministry of Commerce, the Reap stated that with those mentioned facilities, rice exporters would be able to quote competitive rates to Bangladesh.
The rebate and relief accorded by Pakistan will be offset with earning of Export Development Fund (EDF) and withholding tax. The letter also stressed for early decision on the suggestion enabling Reap members to quote acceptable rates in Bangladesh tenders.
Reap also appreciated the Ministry of Commerce in enhancing cordial and co-operative relations with Bangladesh. It is magnanimous of Bangladeshi Prime Minister to give special place to Pakistani rice and Reap wished to be a part in creating better understanding and brotherly relations between two countries. However, Reap said no institution alone could achieve any desired results until and unless the government accorded it full support, co-operation and rebate.
Reap, in its letter said the ministry should accept the recommendations of Acting High Commissioner that Pakistan should seize that opportunity and offer special price and reasonable quantity of non-basmati white rice and accord all facilities to exporters as suggested in the letter.
The Reap vice Chairman Muhammad Anwar Mianoor while talking to Business Recorder here on Thursday said the Bangladesh government was buying non-Basmati parboiled rice and white rice through their Ministry of Food & Disaster Management. This was a recurring market, as every year unfortunately Bangladesh faced havoc of flood due to which their crop had damaged and they were in need of rice from international sources to meet food shortage.
Mianoor said Pakistan was in a position to supply huge quantity of rice to Bangladesh. "We have sufficient stock of white rice to meet the Bangladesh requirement," he said adding that Pakistan must make all endeavours to capture this opportunity of gaining access to the Bangladesh market, which was in the tight grip of India. Every year India earned handsome foreign exchange by selling their surplus stock of rice.
He said that occasion must be utilised to generate valuable foreign exchange for the country, which would play an important role in the overall economic development of Pakistan. "Pakistan High Commission in Bangladesh have also stressed that we must strive to capture the new market at all cost."
"To be competitive with the international market rice exporters we need subsidy in freight", he said.
Mianoor said the freight was around dollars 40 per ton. The government of Pakistan earning as Withholding Tax and Export Development Surcharge would offset the subsidy given. Government of Pakistan should enter into a permanent trade agreement for sale of rice to Bangladesh with relief in duties and taxes to ensure remain in Bangladesh market.