April 9, 2003	Wednesday	Safar 6, 1424

KARACHI, April 8: The Rice Exporters Association of Pakistan (REAP) has urged the government to facilitate export of parboil rice which is in great demand in the world market.

In a communication to the Ministry of Commerce, REAP chairman Abdul Rahim Janoo stressed the need for enhancing the production and facilities for export of parboil rice which is in great demand in many countries.

He said that Pakistani exporters once dominated Saudi Arabian market for parboil rice on having 54pc market share but the same have now dwindled to just 11 per cent. Total rice import of Saudi Arabia, he said stands at 700,000 tons per annum but 75 per cent of this quantity is of parboil (Sela) rice.

Similarly, Janoo said that South Africa which has a rice market of 550,000 tons per annum, import of parboil rice constitutes up to 90pc of this quantity.

The REAP chief said that South Africa requires long grain coarse rice in parboil (Irri-6 and Irri-9), while Saudi Arabia needs Basmati parboil rice. Both these countries have very high per capita incomes and give better unit price.

Consequently, if irritants and hurdles are removed in the way of export of parboil rice the exporters have potential to capture a bigger share in both these markets which are presently dominated by Indian exporters, he added.

Janoo asked the government to allow exporters to import rice processing machinery, packaging, parboil plants free of customs duty and sales tax. He also demanded concessions on gas and power plants.

If the country has to capture parboil rice export market, Janoo said soft loans be given at zero interest rate for setting up parboil plants and reduction of withholding tax from existing 1.25 per cent to 0.5pc on all rice exports.

There is need for sending government sponsored delegations to parboil rice importing countries headed by minister for commerce or EPB chairman.