Pakistani growers worried over TCP rice sale

Growers have shown their reservations over Trading Corporation of Pakistan’s tenders for rice sale in the local market saying it would have bad impact over paddy prices in next season. “TCP should export rice instead of offloading the commodity in the local market, which brings down the rates causing losses to the growers,” Basmati Growers Association President Hamid Malhi said talking to The News on Wednesday. “Whenever rice prices stabilise in the local market, TCP issues sale tender,” Malhi said pointing towards two TCP tenders issued last week for the local sale or export of around 2,500 tons of Irri-6 rice and 25,000 tons of Basmati. TCP has mentioned that Basmati as well as Irri-6 would be available for both local sale and export but the growers have objected. “They have saved their skin by mentioning export in it,” Malhi said. “They are least bothered about the domestic market.” Sindh Balochistan Rice Millers Association, President, Arif Hussain Mahesar, said the TCP tender would not affect the Irri-6 market owing to small quantity, but Basmati market would suffer a glut of the commodity. The growers have already sold their paddy but millers and traders with grain stocks would suffer a plunge in rice rates. Rice Exporters Association of Pakistan Chairman Malik Jahangir said, “TCP’s rice is bad in quality and nobody is willing to eat it.” He said because of the poor quality of its rice, REAP was not participating in the tender. He said the corporation has failed to sell its rice in last two tenders. “If it was good in quality, it would have been taken earlier.” REAP purchased more than 70 percent rice lying with PASSCO, he said, but TCP’s was too bad to eat. Pakistan had a seven million tons bumper crop of rice last year and 6.6 million tonnes this year. TCP purchased 75,000 tonnes of basmati rice last year and 50,000 this year. Export of Irri-6 rice has been increased but basmati remains its level. Hamid Malhi said that early this year the ECC already approved export of basmati lying with the TCP, but no action was taken on its decision. Government has announced support price of Rs1,250 per 40-kg paddy but the growers received only Rs750 from the millers and traders, Malhi said. Though growers have sold their paddy to the millers but the impact of this year’s low rates would affect the prices next year, as lot of grain would be available in the market. Traders would also be affected from dampened prices.