$3 billion rice export target could be missed if...

20 Mar, 2011

Rice Exporters Association of Pakistan (Reap) on Saturday expressed fear that $3 billion rice export target could be missed if the issues being faced by them are not addressed on an urgent basis. Speaking at a press conference at Reap House, Acting Chairman Reap Abdul Ahad Tareen, former chairman Abdul Rahim Janoo and Convenor Reap Tax Committee, Safdar Mehkari suggested that the government should take on board all the stakeholders in the policy making process.
They said the rice trade has tremendously increased in last 10 years under the private sector and now the rice trade has become the second largest foreign exchange earner for the country. "Last year the country's total rice export touched the historic mark of $2.28 billion and for this year we have set a target of $3 billion, which was possible to achieve," they said.
However, they expressed fear that unilateral decisions taken by the government without consulting the stakeholders has made it difficult for rice exporters to achieve this target. According to them rice trade was facing crisis these days due to various issues and a drastic decline could be witnessed in the country's rice exports during the remaining three months of the current fiscal year.
They proposed the government to collect all taxes under one window facility and there should be only one withholding tax as full and final liability instead of imposing various taxes. "It is very difficult for rice exporters to deal with different tax collecting authorities," they said, adding that the one-window facility would be easy for both taxpayers and tax collectors.
They pointed out that Reap wants to give a detailed presentation to the finance minister and Chairman Federal Board of Revenue on the issues being faced by them. "However, the finance minister has no time to meet us and listen to our problems," they said and requested the finance minister, Chairman FBR and other concerned authorities to resolve their issues on an urgent basis.
During the press conference, some rice exporters alleged that the Port Qasim Authority was not providing berths to ships arriving to lift rice consignments. "A ship MV Nabuka arrived on March 15, 2011 to lift a bulk consignment of rice from Port Qasim was still waiting for berth despite three vacant berths available at the said port," they said.
They said the shippers have issued notices to nine rice exporters to pay $20,000 per day till the ship is on waiting for berth in the sea. Similarly, they alleged, another ship was not provided berth at Port Qasim and the ship and rice cargo had to shift to Karachi Port Trust for shipment. They demanded of the concerned authorities to take necessary measures to resolve this issue for timely and smooth shipment of their cargoes.

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