China has granted special quota of $500 million for Pakistan for import of white rice, but the exporters are unable to take its advantage due to high export refinancing rate, Rice Exporters' Association of Pakistan (REAP) Executive Member Karim Aziz Malik claimed.
Talking to Business Recorder here on Thursday, he said, the exporters took up the matter of high export financing rate with Minister for Food, Agriculture and Livestock Sikandar Khan Bosan, a few days back in a meeting and demanded scaling down it to the last year's level.
Last year, the export financing rate was ranging between 4-5 percent and according to Karim Malik the exporters took its advantage to go to the new market and take rice export far beyond its target. But this year sudden increase in export refinancing rate changed the situation for them altogether. Pakistan's rice export was $1 billion against its target of $677 million and it played a significant role in taking the country's exports to the new heights.
Karim recalled that low export refinancing rate encouraged the exporters in 2005-06 and they explored new markets to get orders and they could do even better this year when Pakistan got bumper crop. But, he added, 100 percent increase in export financing rate shattered their plans.
He said, "Rice exporters were planning to explore new markets for white rice which is Pakistan's specialty due to unparalleled taste and assent, but now they are under pressure due to high export financing rate."
Pakistan harvested 5.5 million rice this year, which is its highest production. This could help Pakistan in getting rice export target of $1.2 billion for 2005-06.
China, Iran, Gulf states, European countries are Pakistan's traditional markets for rice export. Iran is heavily dependent on Pakistan for import of white rice.
Several high-level delegations from Iran and China have visited Pakistan during the last two months and showed great interest in buying rice from Pakistan. Recently, China fixed a special quota of $500 million for rice import.