According to a Recorder Report, in a letter addressed to Prime Minister Syed Yousuf Raza Gilani, Rice Exporters Association of Pakistan (REAP) has made a strong case for an effective support to its multi-prong initiative aimed at gainful export of rice in accordance with its tremendous potential.
For one thing, in this context, it has urged the government immediately to stop Pakistan Agricultural Storage and Services Corporation (PASSCO) and Trading Corporation of Pakistan (TCP) from purchasing rice, saying the latter is trying to enter the rice export business.
Moreover, recalling that consequent upon privatisation of rice export by the then PPP government in 1989, the private sector has increased rice exports from $300 million to more than $2 billion in last fiscal year.
As such, it has wondered as to how the TCP, which doesn't have the know-how, technical staff, and the rest of paraphernalia, buys at double the prevailing market rates, can initiate its export. Again, referring to the tender TCP has floated it has that since both the state entities have no processing mills the exercise would end up in total loss to the exchequer. This appears to be why REAP has appealed for cancellation of the disputed tender and to allow exporters do their job.
It has also pointed out that while PASSCO was asked earlier to buy paddy from growers, now it is buying rice from the sellers. Be that as it may, the main thrust of the REAP's comprehensive letter to the Prime Minster will be seen lying on the advisability of assigning export of rice to the private sector through it, claiming representation of the entire body of rice exporters, as emerging in the wake of abolition of the Rice Export Corporation of Pakistan (RECP) for reasons that hardly need repetition.
It will be recalled that prior to its abolition, RECP was the country's sole rice procurement agency, with PASSCO trailing far behind to buy the commodity in very small quantities. The rest of the available yield, meant for local consumption, was left to the private sector, comprising rice dealers, sellers and growers; their main concerns revolving around the varieties approved for cultivation in the Punjab and their pre-harvest support price.
Until then rice exporters had no platform of their own from which to interact with the government. So, coming into existence in 1988-89, REAP started interacting with the Ministries of Commerce and Food, Agriculture and Livestock and other relevant government agencies. It goes without saying that since then it has been tackling with both domestic and international marketing problems thwarting rice exports.
Starting with establishment of the Pakistan Rice Standards, it took a number of initiatives to create increasing demand for Pakistani rice in countries far and near, from Kuwait, Oman, UAE, Bahrain, Qatar and Saudi Arabia, to the European Union, in 1997-98 in the wake of the exit of RECP from the scene.
Then onwards it has been constantly striving for improvement in the quality of Pakistani rice, besides introducing new varieties. As for now, it has come out with apparently ambitious plan for the export of surplus 4 million tons out of 6.5 million tons of current crop rice after taking out 2.5 million tons for domestic needs.
However, for this, it wants the government to instruct TDAP to subsidise 12 delegations of Reap announced in its managing committee meeting, just as the former EPB was doing, besides subsidizing rice processing mills on electricity and diesel bills. At the same time, it has offered to take growers to Thailand/Vietnam/China to educate them on latest farm technologies, especially, in the use of modern farm machinery, which besides increasing the yield, will also save 15 percent rice lost in paddy fields.
What is more, to fill the vacuum in rice training institute, it has shown its readiness to build and run two technical training institutions, which besides increasing employment will provide the needed technical staff to 160 most modern processing mills in the country. Again, lamenting that after International Rice Research Institute's gift Irri-6, which has since degenerated there has been no significant development in Basmati variety after super Basmati.
To make for the lapse it has rightly expressed the urgency of carrying forward the task or to privatise PRI institutes in Kalashah Kaku and Dhokri, or else to induct four Reap members into the boards of both institutes to obtain the desired results. Imaginative, indeed will appear the Reap plan, but attached to it are certain pre-requisites the government may not find easy to provide. But given serious consideration to the proposed scheme of things, the way can be found to make a beginning in the right direction.