The business community of South Punjab has drawn the attention of Small and Medium Enterprises Development Authority (SMEDA) to the difficulties faced by the SME rice growers, millers, processors and exporters and urged study and examination of the issues of the small industry and suggestions for remedial measures to the ministries of agriculture and commerce to save it.
President of Multan Chamber of Commerce & Industry (MCCI) Fareed Mughis A Sheikh said it is incumbent upon SMEDA to look into the predicament of the SMEs engaged in the different businesses, which is in jeopardy due to the issues of the industry and unable to survive under such circumstances, especially when there is a global decline in the commodities market.
One important point which needs to be seriously looked into by the Pakistan Standard Quality Control Authority (PSQCA) is the substandard fertilisers and counterfeit fumigation medicines supplied for destroying insecticides and pesticides. The SME farmer is paying through the nose for these inputs and suffering losses because of its ineffectiveness or low potency.
The modern day logistic companies have a system of collateral management which is comprehensive and covers inspection at different stages, risk management with insurance, warehouse receipt financing, speedy movements and tracking, thus making banks comfortable in financing the SME rice traders before and after shipments. Fareed said after cotton textiles, rice was the second biggest export industry, but due to lack of interest the industry has suffered loss and more than 1,000 rice units have closed down. Similar case was of textile industry which would have to import raw cotton from abroad. MCCI President said due to high farm inputs the prices of cotton, rice and other commodities have become non-competitive. Secondly, primitive methods of cultivation and poor condition of the soil the yields per acre have fallen. It is high time the rice industry modernised, and SMEDA can play an important role in its up gradation and modernisation.
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