Rice procurement: Commerce and Reap join hands against TCP

The Commerce Ministry and Rice Exporters Association of Pakistan (Reap) have joined hands to deal with Trading Corporation of Pakistan (TCP) for not halting rice procurement despite the fact that the corporation''s top management has already been quizzed by the federal government, sources told Business Recorder.
They said that following a meeting between Commerce Minister Amin Fahim and Reap representatives in Karachi, the Commerce Ministry summoned TCP officials in Islamabad and read out charge sheet against the organisation for ''unconvinced'' deals for rice and wheat procurement.
Sources said that the Economic Co-ordination Committee (ECC) of the Cabinet had directed an inquiry against the national grain procurement agencies about procuring rice, wheat and fertiliser at high rates. However, the Commerce Minister in his meeting with Reap in Karachi on January 25 had assured the association of an inquiry into the irregularities committed in purchase of rice by TCP.
Interestingly, two days after the meeting between the minister and Reap representatives, TCP floated fourth rice purchase tender, to be opened in the second week of February, which irritated the association further. The third tender''s opening date is February 9, 2009.
"It seems that some middlemen with connivance of government officials are running from pillar to post to disturb rice export," Reap said in a letter to the Commerce Minister, a copy of which was faxed to Business Recorder.
The association has urged the Commerce Minister to take immediate action, scrap third and fourth rice purchase tenders, and initiate inquiry in the first and second tenders. It has also demanded that TCP should be directed to cancel contracts as they had not lifted rice and to sell back already delivered rice.
According to the association, if immediate steps were not taken on priority basis, (i) the government would have to absorb more than Rs 30 billion losses; (ii) export will be completely stopped and Pakistani market will be captured by India, (iii) 70 percent mills are already shut down; more will follow with unemployment for more than a half a million people.
The association further stated that as Pakistan is not rice consuming country and if rice will not be exported then worst sufferers will be rice growers. When contacted, Abdul Rahim Janoo told Business Recorder that the association had placed all facts before the Commerce Minister, who would not only scrap the tenders but would also take action against the responsible officials.
Meanwhile, officials the Commerce Ministry also confirmed initiation of inquiry against TCP and, in this regard, the organisation has been asked to given answers to questions raised in the meeting. The Ministry has also sought clarification from the TCP about rehiring officials who were already given golden handshake.