KARACHI: The rice exporters, raising concerns over Prime Minister Nawaz Sharif’s relief package for farmers, have said that the no relief has been given to them in package.
Rice Exporters Association of Pakistan (Reap) Chairman Rafique Suleman, in a statement, said that the announced subsidy of Rs5,000 per acre will solve the problems of rice crisis, as this cash support for farmers is not sufficient for Basmati rice farmers. He added that the so-called support price of Rs1,600 for Super Basmati Paddy is not realistic, as the prevailing market rates for Super Basmati Paddy is Rs800 and still there is a huge difference of Rs800 which have to be considered by government.
Suleman also gave some suggestions, which include rollover of all bank limits without penalties should be allowed under Running Finance as well as Export Refinance where settlement should be extended from current 180 days to 360 days. State Bank of Pakistan related cost of funds for all 100pc markup paid/payable on ERF/ FE/ Running Finance should be refunded without penalty and the borrowers may pay only the bank’s spread as per documented realities available with all banks for their respective clients who are rice millers or rice exporters for the period July 2014 to September 2015.
He recommended that refund of 100pc Withholding Tax paid by rice exporters from the period July 2014 to June 2015 and refund of 10pc invoice value to all rice exporters for shipments from July 2014 to June 2015 and withdrawal of 3.5pc withholding tax on local purchase of rice.
One of the most important issues, he said, is the lack of Research & Development in rice as the Rice Research Institutes were failed to provide any new and good quality seed of Basmati rice since last 15 to 20 years.
