'Buying rice by TCP will put a halt on its export'

Rice Exporters Association of Pakistan has strongly opposed any intervention of government institutions in rice trade, saying any decision of buying rice by Trading Corporation of Pakistan will put a halt on rice exports causing huge losses to foreign exchange earnings.
"Such efforts in the recent past by Passco and TCP are prime examples where the state objective of supporting the farmers was not met and in return the state not only lost valuable money in billions but due to intervention by Passco and TCP the markets were inflated artificially resulting in huge loss of export earnings", a press release issued here on Tuesday said. "We have serious reservations over the demands of buying rice by TCP to stabilise the paddy/rice prices", Reap said adding any effort in this regard would be in the wrong direction.
Reap firmly stands in support of the farmers and would like to see government's effort in the right direction to directly support the farmers. Reap would support the government to provide financial assistance in the shape of subsidies for buying fertiliser, reduction in electricity tube well bills and purchase of seeds etc to the small farmers having land holdings of 10 acres and less. Such programme will not only help the farmer directly but will also avoid any distortion on the market and supply of rice for exports, it added.
"While stating its reservation Reap again reminds all concerned authorities and the economic managers that owing to recent devaluation of Indian Rupee versus the dollar by a good 20 percent during the last four months; lifting of ban on export of non basmati rice and releasing two million tons of non basmati rice for export and 20 to 30 percent decrease in the basmati and non basmati rice export prices, Pakistan Rice is already facing tough competition by cheap Indian exports, and at this important time, if the government proceeds with any intervention it will be contrary to government's pledge to the rice exporters where Reap has achieved export targets of over $2 billion now on a consistent basis", the press release said.-PR