Home »Agriculture and Allied » Pakistan » Revival of basmati brand: Rice exporters seek government’s help to develop Kalar Belt
Rice exporters sought the government's assistance to develop Kalar Belt to produce more of the crop to help the country grow the commodity export to $5 billion annually, as Federal Economic Adviser, Dr Abdul Hafeez Shaikh, has affirmed his support to the sector.

A meeting on Thursday with Hafeez Shaikh, convener FPCCI Standing Committee on Rice, Rafique Suleman sought a certain help from the government to develop Kalar Belt in a bid to revive the basmati brand. Rafiq Suleman, who is also the former Chairman of Rice Exporters Association of Pakistan (Reap), said that the basmati has the potential to fetch alone $2 billion, as its existing export stands at $750 million.

He told the adviser that the export of rice is over $2 billion a year, which makes it second largest sector following hosiery sector's export, saying that it, however, showed restrained while reacting on fiscal budget 2019-20. Advising to the exporting sectors, he said that business community should act responsibly and shun escalating the negativity on the country's already ailing economy.

"While we have our reservations the rice export sector represented by Reap continues to work on possible solutions which should come out as a win-win solution for rice sector and the government," the convener of the FPCCI Standing Committee on Rice said, showing a full trust and faith in the PTI's government and its Mincom Team and Finance Team. He hoped the government's endeavor will help it succeed against all the economic challenges.

Showing satisfaction, Rafiq Suleman said that the Mincom and Hafiz Shaikh with his team are making headways to stabilize the economy through multiple PTAs and FTAs with different nations. "PTAs and FTAs with Indonesia and China have immediately starting bearing results," he said, adding that in the long-run, the efforts of Mincom will start yielding results in a span of three years.

However, he asked the Mincom to set up a stage for fair-play for all private sectors through correct policy decisions in consultation with the Federal Finance Ministry. He also demanded of the government to set up technical institutes on a full time basis to equip manpower with skills through professionals. He said that the private sectors should remain only as consultative bodies to extend their feedback and advisories to the government in this connection.

The former Reap head also highlighted the energy crisis in the meeting that the rice producing sector is faced with, saying that "this remains the most neglected area by all governments including the incumbent PTI one". He said that from a small rice miller in Gujranwala to those endeavoring in Shadadkot and Larkana are faced with extremely poor supplies of utilities and this continues to grip the entire agriculture value chain of the country.

He said that the agriculture value chain continues to face the pre-and-post harvest losses between 3 times and 10 times. He demanded of the government to step up working on a war footing to revive the basmati heritage, saying that the development of Kalar Belt is expected to grow the country's export of this variety of rice to $2 billion from $750 million at present. "We are glad both Federal and Provincial Departments have given positive response and implementation has already started," he added.

Showing disappointment, he said that the 80 percent of the KPT and PQA infrastructure is focused on import oriented as the exports suffer from lack of a priority. He said that the Ports and Shipping Ministry needs to work close with the Mincom to ensure the priority for exports in every planning that it undertakes.

He said that all the country's container terminals operating with the world class infrastructure has brought excessive costs to trade in general and exports in particular. The Federal Finance Ministry, Mincom and Ports and Shipping should review all the existing agreements with the container terminals since the exorbitant tariffs they charge to have been hurting trade and the economy, Rafique Suleman said.

He also recommended to Hafeez Shaikh to have the federal government to work with the provincial governments to promote agri-clusters to ensure developing plug and play facility for the stakeholders.

He also pleaded to the associations protesting against the budget announcements, saying that such an act is self-destructive to the businesses and exports besides to the country's economy. "I request all our business association brothers to please stop publicly issuing statements against the government or budget 2019-20 as it only causes more uncertainties and damage the market, which brings more loss to the business and economy as well," Rafique Suleman added.

Copyright Business Recorder, 2019


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