KARACHI, Oct 30: The government should ask the Trading Corporation of Pakistan (TCP) to export rice on government-to-government level to the Gulf and Middle Eastern countries to earn foreign exchange badly needed by the country.

The country is expected to have a bumper paddy crop this season and the ministry of food and agriculture (Minfal) has assigned the Pakistan Agricultural Storage and Supplies Corporation (Passco) to purchase paddy from growers at a minimum indicative price (MIP).

In a statement president of the Union of Small and Medium Enterprises (Unisame) Zulfikar Thaver said that the Minfal should take concrete steps for the rice trade as a whole rather than merely fixing MIP for basmati and non-basmati rice.

He further said that the Passco should not be allowed to purchase paddy from growers at the new rate because it will burden the exchequer at a time when there is a liquidity crunch.

Instead of storing the paddy, which is not an easy job, as Passco lacks the necessary infrastructure to store rice under different conditions, it would be advisable that the TCP should be asked to export rice on government-to government level to Gulf and Middle Eastern countries.

Secondly, he said the government should persuade and encourage the rice exporters to export more to countries, which are buying from its neighbours, because Pakistani super basmati is much superior.