KARACHI, Aug 22: Rice exporters have urged the government to redefine the Quality Review Committee (QRC) responsibilities to make it an effective Pre-Shipment Inspection (PSI) company.
A large number of exporters are not satisfied with the working of the QRC and are of the view that its inspections of rice export consignments are generally partial favouring some leading exporters. The biggest flaw under the present working system of the QRC is that it is being run by exporters themselves.
The ministry of commerce is also having similar views and feel that QRC was giving rise to conflicts by giving biased decisions on inspection of export consignments to a large section of small and medium size exporters. However, a section of exporters somehow manages to prevail. The MoC has also asked the EPB to make QRC independent, impartial and transparent but nothing has been done so far.
Another technical point being raised by some exporters is that inspection fee is always paid by buyers because PSI is buyers’ requirement. If the buyer chooses to have the cargo inspected, he should also pay the fee.
However, the previous government somehow was misguided by vested interest in the rice trade who gave QRC the role of PSI. This resulted into a lope sided working of the QRC as the body comprised members from rice trade. Nevertheless, the then secretary commerce Mirza Qamar Baig did realize the mistake and tried to rectify the situation by making QRC independent from Rice Exporters Association of Pakistan (REAP).
Exporters said although QRC is working under EPB, for all practical purposes it is being manoeuvred and manipulated by some members of the REAP. Rice exporters have urged the minister of commerce Humayun Akhtar Khan to comprehend the matter in its true perspective and said that how could rice exporters be members of QRC and have access to information or the cargo of their competitors.
Rice exporters demanded that the unjust and unfair working of the QRC as PSI should be stopped and pre-shipment inspection should be carried by a neutral body on the suggestion of a buyer (importer) and not by exporters or their representative body such as REAP.
When the government is adopting a policy of liberization and deregulation in almost all the sectors of the economy, therefore as to why the rice trade (export) is being subjected to such hindrances which are against global trade norms.
Exporters have alleged that hefty fee collected on account of pre-shipment inspection by the QRC have been used by the REAP to purchase costly properties at Lahore and Karachi instead of setting up research institution for the improvement of quality and increased crop size to maintain supply side of the produce.
The system is so defective that even foreign buyers express their surprise on the working of QRC and remark that it is surprising that the government does not have trust on exporters and even ridicule that the PSI is being carried by the exporters’ body.
It is more surprising that only Basmati rice is subjected to PSI by the QRC where as non-Basmati rice is directly exported.
It is even more astonishing that at a time when the Customs have adopted a CARe system under which there is least interaction with importers and exporters the REAP is penalizing its own members through SPI, exporters added.
