LAHORE, March 8: The Rice Exporters Association of Pakistan (Reap) has said that Pakistan will suffer a loss of around Rs2 billion per annum, if the National Commodity Exchange Limited (NCEL) was allowed to purchase and export Pakistani rice worldwide.“It’s not a company, but it is just an idea of former premier Shaukat Aziz,” said Reap chairman Azhar Akhtar.

Earlier, the NCEL was in worldwide trading of gold, and now the Securities and Exchange Commission of Pakistan (SECP) has issued it a licence to start trading in rice, initially irri-6,” said Mr Akhtar.

“We don’t have sufficient quantity of rice for small packing and shelf sale. When rice isn’t available even for retail sale, how can we afford bulk supplies,” he replied when asked how NCEL could affect Reap members.

“We fear that the government at the next stage will allow the NCEL to trade in Basmati rice as well.”

He strongly condemned the permission by the SECP to the NCEL, and termed it an “issue of national concern which is damaging the credibility of our stakeholders.”

The Reap chairman sought immediate intervention of the government, especially of the president, the prime minister and the commerce minister, demanding immediate cancellation of the licence to the NCEL.

He believed that the NCEL would purchase rice in the peak season in bulk at low prices and store it. Then the NEC would export it to world markets in bulk and definitely it would be in a position to sell cheaper than the local traders throughout the season, he added.

While the Reap members, owing to less financial resources available to them would not be in a position to buy rice in one-go at peak season.

“The Reap members have to make purchases of rice throughout the season keeping in view their financial position and that too at the market rates which keep on rising till the end of the season,” he explained.

In the given situation, Mr Akhtar feared, the foreign-based trading company, the NCEL, would develop monopoly in the local as well as foreign markets while the local rice exporters would lose their international business.

He said if such a system was adopted, the prices of the commodity in the local market would shoot up and would go beyond the reach of the common man.—PPI