The association praised the government for not interfering unnecessarily in rice export affairs and for allowing a free market environment. At the same time, the body congratulated its members for achieving the feat despite all odds and for negating the unelected trade leaders who had predicted the opposite.
“All members of the Rice Exporters Association of Pakistan (REAP) pay taxes and don’t get any subsidies on export,” said REAP Chairman Javaid Islam Agha in a press release on Wednesday.
The association was against subsidies, which wasted state funds and promoted corruption, he said, adding they also did not support manipulative artificial intervention, which distorts the free market.
Highlighting the factors which kept exports at high levels, the association chairman pointed to the Quality Rice Centre (QRC), established by REAP as a public-private partnership. “QRC remained a quality watchdog in rice exports and played a crucial role,” he said.
Underlining problems, Agha said exporters faced a debilitating energy crisis compounded by a discouraging law and order situation.
In the international market, India is marketing huge surplus stocks, supported by a massive 20% depreciation of the Indian rupee. Vietnam and Myanmar have also presented stiff competitive challenges.
Besides these, basmati rice exports to Iran have dropped sharply in the face of US and UN sanctions on Tehran.
Published in The Express Tribune, June 28th, 2012.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ