REAP to buy Irri-6 rice at Rs600 per 40kg: minister
Rice prices have fallen in the international market and that is why the government did not enhance support price of basmati rice to Rs1,500 per 40kg, said Gondal. - File photo
KARACHI: Federal Minister for Food and Agriculture Nazar Muhammad Gondal said Monday that rice exporters have agreed to buy moisture free Irri-6 rice crop at the support price of about Rs600 per 40kg.
He was responding to the queries of the media after chairing a meeting with the office bearers and members Rice Exporters Association of Pakistan (REAP).
The minister, however, said that the moisture element may slightly reduce the procurement price, but it will not be less than Rs570 per 40kg depending on the level of moisture in rice.
Regarding basmati rice, Gondal said that the demands of rice exporters were genuine and he will try to arrange an urgent meeting of rice exporters with the Finance Minister in Islamabad on Tuesday to resolve this issue.
He said that rice exporters seek concessionary financing including export finance credit so that they can start the purchase of basmati rice from growers two months in advance at the prescribed support price of Rs1,250 per 40kg.
He said that the exporters wanted a lower mark up rate and an extension in the time period for repayment so that they can be competitive in the international market.
The minister said that rice prices have fallen in the international market and this is the reason why the government did not enhance support price of basmati rice to Rs1,500 per 40kg.
He pointed out that Passco will start procurement of rice in Punjab from Tuesday. Our main purpose is to protect the farmers at every cost, because if they do not get a fair price this year, they will not grow rice next year.
Gondal said that farmers have to be encouraged to get bumper crops.
He said that REAP has also agreed to generously fund the research and development activities to get high yielding varieties to get better rice acreage.
Earlier, rice exporters suggested the minister to instruct banks to provide credit to exporters for rice procurement at concessionary rates. Similarly, banks must enhance time period from 180 days to 270 days as in the case of carpets, they added.
They said that liquidity crunch was creating problems in rice procurement. They said that banks were not enhancing credit limits for rice procurement.—APP
He was responding to the queries of the media after chairing a meeting with the office bearers and members Rice Exporters Association of Pakistan (REAP).
The minister, however, said that the moisture element may slightly reduce the procurement price, but it will not be less than Rs570 per 40kg depending on the level of moisture in rice.
Regarding basmati rice, Gondal said that the demands of rice exporters were genuine and he will try to arrange an urgent meeting of rice exporters with the Finance Minister in Islamabad on Tuesday to resolve this issue.
He said that rice exporters seek concessionary financing including export finance credit so that they can start the purchase of basmati rice from growers two months in advance at the prescribed support price of Rs1,250 per 40kg.
He said that the exporters wanted a lower mark up rate and an extension in the time period for repayment so that they can be competitive in the international market.
The minister said that rice prices have fallen in the international market and this is the reason why the government did not enhance support price of basmati rice to Rs1,500 per 40kg.
He pointed out that Passco will start procurement of rice in Punjab from Tuesday. Our main purpose is to protect the farmers at every cost, because if they do not get a fair price this year, they will not grow rice next year.
Gondal said that farmers have to be encouraged to get bumper crops.
He said that REAP has also agreed to generously fund the research and development activities to get high yielding varieties to get better rice acreage.
Earlier, rice exporters suggested the minister to instruct banks to provide credit to exporters for rice procurement at concessionary rates. Similarly, banks must enhance time period from 180 days to 270 days as in the case of carpets, they added.
They said that liquidity crunch was creating problems in rice procurement. They said that banks were not enhancing credit limits for rice procurement.—APP
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