KARACHI, Oct 25: Higher freight charges by shipping lines is jeopardizing rice exports to African countries at a time when the country was expecting bumper paddy crop.

Rice exporters are perturbed over a 40 per cent hike in freight charges to African ports where rice exports have almost come to a stand-still.

This was observed at an emergency meeting of the managing committee of the Rice Exporters Association of Pakistan (REAP) held at REAP House here on Saturday.

Presided over by Sheikh Arshad Mehmud, vice chairman REAP the participants of the meeting sought government intervention and suggested that national shipping line should come forward and arrange shipment of rice at reasonable freight rates.

It was also proposed that freight subsidy be allowed on shipments to all African ports and withholding tax of 1.25 per cent on export of Irri-6 rice be reduced.

There was strong demand from REAP members that the EPB should provide funds from Export Development Fund (EDF) for advertising Pakistani Basmati Rice as ‘No. 1 Best Quality Basmati rice,’ on PTV World, and in LEC and NBC in Arabic language.

The participants lamented that prevailing price of Irri-6 rice was around $180 fob per ton and after adding freight charges of $40 per ton the export of Irri-6 rice to African countries becomes uncompetitive.

They have cautioned the government that if no immediate and appropriate action was taken the fallout of the adverse situation would be direct on growers.

The country this season (2003-04) is expecting to harvest bumper rice crop of up to 3.6 million tons. After meeting domestic need, around 2.2 million tons would be exportable surplus.