LAHORE, Dec 16: Basmati growers on Tuesday opposed the Reap’s demand to cancel TCP’s tender for rice and said they fully supported the government’s initiative to stabilise the market for a better price to the farmers.

In a press statement they said it was disturbing to note that the Reap was unable to purchase paddy at Rs1,500 per 40kg, whereas they had demanded the same price at the Rice Board’s meeting in September this year.

The farmers had demanded Rs2,000 but the government decided according to the Reap’s demand. However, it failed to act accordingly and the basmati paddy price dropped to Rs1,000.

The government inducted Passco to give relief to the farmers and later decided to induct TCP to pick up the surplus rice production, they added.

The growers further said that the clamour of loss to the national exchequer and the local consumer was nothing but a farce. The market has improved because of Passco’s intervention and TCP purchases, which would relieve the pressure from the domestic rice trade.

The monopoly of Reap, they continued, is bound to be broken by the government decision which is a good omen for the rice sector.

The export of 0.2 to 0.3 million tons of basmati rice by the government agencies will not affect the total rice export potential of 4 million tons this year, they added.

The steps taken by the government will ensure better rice production next year and will earn foreign exchange for the country. The quality of rice being procured by Passco is exportable on a reasonable profit and, therefore, is not a bad bargain for the government, the growers concluded.