HYDERABAD, Nov 15: The Sindh-Balochistan Rice Millers and Traders Association has criticized what it called destructive and dishonest practices of rice purchasers. In a communication addressed to the prime minister, federal ministers for commerce and food and agriculture and the Sindh governor, a copy of which was faxed to Dawn on Tuesday, association president Gada Hussain Mahessar accused rice purchasers of monopolising the rice trade.

He said rice purchasers were not only ruining growers and millers but their malpractice was also affecting foreign exchange earnings. He said if their malpractice in procurement of rice for export was not checked, it would damage rice production in Sindh and Balochistan.

According to him, Sindh and Balochistan produced 90 per cent of coarse rice and more than one million metric tons of rice was exported every year from the two provinces.

He claimed that Pakistan was earning 200 million dollars in foreign exchange on account of rice exports.

Mr Mahessar said rice purchasers played a significant role in better yield of crop and quality control. He alleged that exporters in Karachi preferred to purchase inferior quality of rice and they also paid less to growers in many ways, including deduction of weight. He said the inferior rice was again processed by the exporter at his own processing plants installed in Karachi.

He claimed that exporters compelled rice millers to sell on credit basis and the payment was delayed by 30 to 70 days. He said this practice increased the burden of bank interest on rice millers who had to make prompt payment to growers for purchase of paddy. He alleged that many exporters had fleeced millers and traders by purchasing rice on credit and then fleeing the country or hiding themselves. Due to such frauds, millers suffered losses every year and, therefore, they were least interested in modernising their plants to obtain better quality of rice, he added.