LARKANA, March 22: The Sindh Baluchistan Rice Millers and Traders Association (SBRMTA) on Monday apprehended that buying 500,000 tons of rice from India would jeopardize rice industry in Pakistan.

"The Rice Exporters Association of Pakistan (REAP) is trying to give the government an impression that it will buy par boil rice machinery badly needed for the local industry," said Gada Hussain Mahisar, chairman of the SBRMTA.

Speaking at a news conference here he disclosed that the REAP delegation currently visiting India had skipped the primary plan of purchasing modern machinery and was allegedly engaged in striking deals for importing Indian rice in Delhi.

Mr Mahisar feared that this kind of deal would ruin the local rice industry. The current crop situation had given a push to the Irri-6 variety, which has a good demand in African countries.

He said that after meeting local demands the country exported 0.9 to 1.2 million tons of rice each year, and up to February 2004 only 0.36 million tons had been exported and still 0.75 million tons were lying in the country.

Mr Mahisar said that the import of Indian rice would provide an ideal situation to the profiteers to buy local stocks at throwaway prices and earn huge profits.

The SBRMTA has also approached the president and the prime minister and requests them to intervene as such move could have drastic effects on the local rice industry.

Mr Mahisar said the REAP had been formed purely for export purposes but its representatives had started involving themselves in striking import deals. It is a high time for the government to check this what they called illegal activity of the REAP.