Rice exporters to buy Irri at Rs600 a maund

After extensive talks on the support price of rice with officials of the
Ministry of Food and Agriculture, the Rice Exporters Association of
Pakistan (REAP) has agreed to buy Irri-6 paddy at the new support price
of Rs600 per 40 kg.

Federal Minister for Food and Agriculture Nazar Mohammad Gondal held a
high-level meeting with those associated with rice trade at the REAP
House here on Monday. Sindh Minister of Agriculture Syed Ali Nawaz Shah,
Federal Secretary Food and Agriculture Zia-ur-Rehman, Sindh Secretary
Agriculture Agha Khan Akhtar, Managing Director Pakistan Agriculture
Storage and Supplies Corporation (PASSCO) Major General Anwer Saeed
Khan, President Sindh Abadgar Board Abdul Majeed Nizamani, Chairman
Basmati Growers Association Hamid Malhi, ex-chairman REAP Abdul Rahim
Janoo and other representatives of the association attended the meeting.

Talking to media persons after the meeting, the federal food minister
said REAP had given a positive response to his request to support paddy
farmers. Besides, the association offered the government maximum funds
for research and development of rice varieties.

However, owing to difference in prices of basmati, he said, no agreement
could be reached for its purchase. He said PASSCO had started unlimited
procurement of basmati rice in Punjab in an attempt to ensure payment of
support price to the growers.

Earlier during the meeting, the food minister asked REAP representatives
to provide incentives to the farmers and said until and unless the
farmers produced the commodity, how it would be possible to make exports.

Sindh Abadgar Board President Abdul Majeed Nizamani said farmers,
processors and exporters or traders were three major stakeholders in
rice trade and they should be treated equally. He said rupee
depreciation had pushed up the input cost of rice by 28 per cent and
despite the increasing support price of rice the government had reduced
the rate of paddy.

Irri-6 price was reduced to Rs600 from Rs700 per 40 kg and Basmati price
was curtailed to Rs1,250 from Rs1,500 last year. "There is a need for
timely intervention, but unfortunately the intervention comes at a time
when a larger portion of paddy with the farmers is sold."

He said around 70 per cent paddy in lower Sindh had been sold and the
situation was almost the same in Punjab and Balochistan. PASSCO should
step in the market in July and August which would help the growers, he
added.

Basmati Growers Association Chairman Hamid Malhi said if competitive
prices were not sought by the exporters from the international market,
there would be a low crop in the country next year. He said government
intervention was around 6 to 7pc last year and that was not going to
increase this year.

REAP ex-chairman Abdul Rahim Janoo said the association was not a
charitable organisation and when prices were lower in the international
market they would not give high prices to the growers. The exporters
asked the minister if the government wanted to provide relief to the
growers, it should help them in purchase of seeds and fertilisers.