February 23, 2006	Thursday	Muharram 24, 1427

KARACHI, Feb 22: Acting President Mohammedmian Soomro has asked rice exporters to extend financial and technical assistance to millers and growers for improving quality and increasing rice production.

Speaking at a joint dinner organized by Rice Exporters Association of Pakistan (REAP), millers and growers on Tuesday, the acting president stressed upon the need of close cooperation and coordination among all the stakeholders of rice trade.

Mr Soomro said that as exporters had better acumen and knowledge about world market therefore they should assist millers and growers not only financially but also guide them for improving quality and production to achieve economies of scale.

The dinner was attended by a large number of growers, millers and exporters from all over the country and this gave an opportunity to all stakeholders to know each other’s problems and view point.

The acting president strongly suggested that there should be close coordination and cooperation among all stakeholders and they should not only supplement each other’s efforts but also extend financial assistance to improve paddy crop.

He also called for evolving of high-yielding and quality seeds for increasing paddy production to boost exports which, he said, was not possible without research and development work and could be possible if exporters extend assistance to millers and growers.

He said this would result in increased production of high quality and value-added rice and would help exporters to fetch better price in the world market. The millers should be assisted in getting technology for producing quality rice and this is the only way for earning more forex for the country.

“I must say let the government research institutions do their way but it is equally necessary for REAP to do research and development work for evolving quality seeds and adopting of latest technology,” the acting president asserted.

Mohammedmian Soomro assured his full support for resolving rice issues and said that majority of these could be tackled at provincial level.

Sindh Labour and Industry Minister Adil Siddiqui addressing the dinner said that during the last three years as many as 300 new industrial units had been set up in the province.

He said that Sindh Governor Dr Ishratul Ibad was taking keen interest in improving the law and order situation to facilitate industrial and economic growth in the province.

The minister appreciated the joint strategy adopted by all the stakeholders of the rice trade, including growers, millers and exporters, and suggested that a similar cooperation should also be made in the sugar industry.

Responding to a point raised by REAP vice-chairman Tariq Aziz, the minister said that he would extend his full support for the withdrawal of sales tax on all inputs and electricity for rice growers.

Mr Siddiqui said that he would also take up this matter with the prime minister so that a quick decision was taken. He agreed that input cost on agriculture was higher than that of India which made “our products costly and uncompetitive in the world market”.

Tariq Aziz sought the withdrawal of sales tax on all the inputs of agriculture, including fertilizer, seeds, pesticides and power bills, and said that since the government under the WTO agreement could not give subsidy, therefore, it should abolish 15 per cent sales tax on all inputs on agriculture.

To a demand raised by Karachi-based rice exporters, the minister assured that he would resolve the land dispute at Hawksbay, which was presently being used by rice exporters as warehouses.

REAP former chairman Abdul Rahim Janoo said that last fiscal year rice exports hit $940 million and hoped that with a bumper crop exports would cross $1bn mark this year.

He assured that REAP members could arrange financing for machinery to millers on contract basis and the millers could pay back by supplying milled rice on buyback arrangement.

Similarly, he said that exporters could give advance payments to growers to buy fertilizer and other inputs for paddy but there should be solid guarantees that once the crop matures exporters get the rice to offset advances at prevailing market prices.

He further said that REAP was ready to assist millers in setting up warehouses in Karachi and could also hire staff to manage them.