Growers for fixing Basmati rice's export price at $900/ton

M RAFIQUE GORAYA

LAHORE: Pakistan Basmati Rice Growers Association has demanded of the government to fix $ 900 per ton as the minimum export price of super Basmati rice (the premium variety of paddy) to control under-invoicing of the cash commodity.

Talking to Business Recorder here on Wednesday, President Basmati Rice Growers Association Hamid Malhi claimed that Pakistan was losing millions in foreign exchange as some rice exporters are allegedly indulging in duty-evasion and under-invoicing.

Malhi recalled that Indian government had fixed minimum export price of Basmati rice at $ 900 per ton during past three years to ensure better remuneration for its farmers and reasonable foreign exchange earnings.

Malhi said that as 20 percent rice crop had been damaged in recent floods in Thailand international rice dealers especially of Thailand were looking to buy rice from Pakistan, as Pakistan's prices were cheaper in the region.

He said Pakistani exporters apparently were either dumping rice in international market or under-invoicing exports to make windfall but the government has refused to slap the minimum export price (MEP) despite continuous demand from growers in the light of Indian experience.

Hamid Malhi said that Basmati rice was exported at an average price of $844 per ton in 2010-11 as against the Indian minimum export price of $900 per tons. In order to check under-invoicing, the Federal government should announce minimum export price after properly assessing price of rice in international market, otherwise the exporters will dump rice abroad at cheaper rates, he added

Malhi said Punjab is likely to produce 3.3. millions ton rice, of which 2.8 millions superior quality Basmati rice during 2011-12 crop whereas production figures of Sindh province are yet to come.

He said through transparent marketing and small quantity instead of bulk exports, Pakistan could easily earn more than $3 billion by export of rice, which is staple food of many countries.