The country''s rice exports are likely to suffer a shortfall of over 300,000 tonnes due to the 30 percent expected decline in Sindh''s rice production alone for the next crop season starting in September.
The prediction regarding less rain and shortage of irrigation water that accumulates to a 40 percent water shortage is likely to hit the rice crop in Sindh and a decline of 900,000 tonnes in the production is feared as compared to the last year.
These views were expressed by Haji Abdul Majeed, Chairman, Rice Exporters Association of Pakistan (REAP) in his presentation given during the meeting of Federal Export Promotion Board presided over by the Prime Minister Shaukat Aziz on Saturday.
He said that the old seeds of Irri-6 are producing less yield and the growers are facing heavy input cost due to the price hike of fertiliser, pesticides, diesel, electricity and seed cost.
He said that the middle traders are getting the benefit as they squeeze the farmers, millers and traders. The losers are farmers and exporters. Farmers and millers would get a better price if they work through intermediary or middlemen who make money while supplying input and taking away rice at lower rates. Chairman Reap said that the rice export sector is ignored completely and even in the budget for the year 2006-07.
He suggested that a central market should be established urgently where growers and millers bring paddy and white milled rice to Karachi where warehousing is urgently required. He said that the growers and millers could get a better price if they bring their rice to Karachi at a certain place by eliminating the middlemen.
He demanded of the government to allow import of parboiled plants without duty and sales tax. He also demanded for handing over the Rice Research Institute Dokri to the REAP for research work of rice and the provision of place for laboratory.
He also demanded for the provision of 500 acres of land for rice exporters to store rice in addition to warehouse as well as land to farmers and millers. He suggested that warehouses should be controlled/supervised by Zarai Tarqiati Bank as the lender.
He informed the meeting that the Reap has achieved the target of $one billion of rice exports as it has exported over $1.12 billion worth of rice including nearly 900,000 tonnes of basmati for first time in the history.