Cereal body opposes ban on maize export

Experts say country has surplus output; exports will enhance forex earnings

KARACHI:

Exporters have urged the government not to ban maize exports, as the country has surplus maize production and it earns foreign exchange for the national exchequer. In a letter to the Ministry of Commerce and the Ministry of National Food Security and Research, the Cereal Association of Pakistan requested the authorities not to impose any restriction on exports of maize “and let farmers make better money from their efforts and crop”.

“We believe that the ban on export will destroy the crop of maize like wheat,” Cereal Association Chairman Muzammil R Chappal said while talking to The Express Tribune. “Export of maize is one of the success stories of the private sector due to the prolonged hard work,” he remarked. In 1995, he recalled that corn production was almost zero but “now it has reached over 9 million tons as against 6 million tons of domestic consumption”.

Maize production has increased due to better pricing and healthy earnings of farmers, he said, adding that still the private sector was making efforts to enhance the production up to 18 million tons in the next three years. “Currently, maize is being consumed for chicken feed in the local market and the surplus quantity is being exported by the private sector, without any subsidy, to earn foreign exchange for the country,” he said.

“A corn crop of around 9 million tons is not only sufficient for the local industry but it has also created space for exports,” he added. “However, some elements are misguiding the government for a ban on export of maize without realising the ground realities,” he lamented. The export of maize should not be stopped “as it is not an essential commodity”, Sindh Abadgar Board (SAB) Vice President Mahmood Nawaz Shah said.

“The ban on export will affect the farmers as it will impact the domestic prices,” he underlined, adding that with a high cost of production for the farmers, it was critical that “the export continues without any hindrance”. “Last year, the exports by the private sector were about 0.6 million tons that brought $180 million, and now the private sector is planning to export around 0.8 to 0.9 million tons, which will bring more foreign exchange,” he noted.

“Maize export not only earns substantial foreign exchange but also helps the farmers to get a better price for the crop,” Agriculture Republic Co-founder Aamer Hayat Bhandara said. Halting the export would lower prices in the local market and would hurt the farmers as well “and then they will lose interest in maize and we will see the situation like the one faced by wheat”, he maintained.

“This time agriculture is leading the growth in the economy so the government should ponder upon other solutions instead of banning export.” The private sector had not only encouraged the local production of maize by providing a better price to the farmers but also initiated exports without any government subsidy, he emphasised. “With the current growth in exports, Pakistan is all set to achieve corn exports of $1 billion in the next three years,” he projected.