ISLAMABAD, May 4: Exporters have criticised the proposed government move to allow the state-owned Passco to export rice to Iran saying that the government's role should be only that of a facilitator and not a competitor to the private sector.

"There is no reason for reviving the ugly past once again at all. The corruption and problems related to the Rice Export Corporation of Pakistan (RECP) are quite fresh in our minds," a leading rice exporter on condition of anonymity told Dawn.

He said the private sector must oppose all such moves that attempt to revive the ghost of the RECP in the shape of Passco, TCP or any other body.

Recently, Pakistani trade mission based in Tehran had sought clarification from the agriculture ministry through a letter whether Passco can be allowed to export Irri-9 and basmati rice to Iran through official channels.

When contacted Secretary Ministry of Food and Agriculture Muhammad Ismail Qureshi confirmed that the issue was under consideration of the ministry on the request received from the Iranian government.

"We want the private sector to export the rice," he said. "But Iranian government has some problems in making contracts with the private sector,” he added.

After seeking comments from the rice exporters, the secretary said Pakistan would convey the response to the Iranian government. "We have already sent the letter to the chairman Rice Exporters Association of Pakistan for seeking comments from the stakeholders on the issue," he added.

Export surplus in all types of rice, including Basmati is much smaller than a few years ago and exporters are finding it difficult to meet the demand from the traditional markets. The fact is that the private sector is facing problems in fulfilling its commitments due to supply shortages and unusual price hikes in the local market for all varieties of rice.

Zahid Khawaja, a rice exporter from Lahore told Dawn on telephone that for Irri, Pakistan actually exports all the rice much before the arrival of next crop and there was no surplus. For Basmati varieties, similar situation prevails.

He proposed that Pakistan should ask the Iranian government to allow all rice imports from Pakistan - whether through the government owned Trading Corporation (TCP)) or through the private sector - to be at zero duty or maximum at 4 per cent duty that is now applicable only to GTC Iran.

"That way, the smuggling will become redundant and the under-voicing will also become irrelevant with the entire rice exports to Iran coming under the formal sector and reflected in the official export sales of Pakistan. Better links will established between the two brotherly countries through the free market private sector trade," he added.

Further, better banking arrangements between Pakistan and Iran should be in place. Their quarantine and phyto-sanitary measures must be friendlier then at present that create large blockages at entry points, especially on land route.