KARACHI, Jan 23: Federal Minister for Commerce Humanyun Akhtar Khan on Thursday asked rice exporters to develop their own brand names for rice and should ensure good quality to fetch better price in the world market.
He said that Export Promotion Bureau (EPB) will provide financial assistance from Export Development Fund (EDF) to the exporters, interested in developing their brand names.
Presently, he said, there is only one brand name of Pakistani basmati rice using exporters based in Lahore, whereas Indian exporters, who widely use Pakistani rice, have developed their own brand names in the world market.
Speaking as a chief guest at a luncheon meeting organized by the Rice Exporters Association of Pakistan (REAP) on Thursday in a local hotel, the minister said that there was also urgent need to promote research and development (R&D) programme in all segments of trade and industry.
However, Humanyun Akhtar Khan was quick to say that this work should be taken up by the respective trade bodies in collaboration with local universities, institutions or foreign experts and should not expect that the government would be of any assistance in this regard.
Nevertheless, the minister said the government would formulate such policies, which could encourage and promote R&D work at trade bodies level. Without going into details, he suggested that incentives and relaxations in taxes could be used as tool for encouraging research work.
He said that rice is one of the oldest export item of the country and by now its exports should have crossed one billion dollars mark. Therefore, the minister stressed upon the exporters to go for value-addition of the produce because it will assist them in fetching higher value and foreign exchange earning.
Appreciating the suggestion of the REAP chairman Abdul Rahim Janoo for setting up Rice Export Processing Zone (REPZ) in Karachi the minister said that all assistance will be extended for acquiring a piece of land required for the zone.
The minister further said that he will also approach the Sindh government for allotting a piece of land for the zone and asked the REAP members to use the zone for value addition activity as well as maintaining of rice quality in export trade.
He assured the REAP chairman of resolving, where necessary, the issues raised by him in his address of welcome and said that the rice exporters should pay a token amount of 1.25 per cent towards taxes.
Earlier, the chairman REAP Abdul Rahim Janoo drew the attention of the minister towards emerging as well as existing markets for rice. He said Iran which imported 245,000 tons of Pakistani basmati and Irri-9 through Dubai last year and about 35,000 tons rice directly can emerge as Pakistan’s largest Basmati buyer if proper strategy is adopted.
Similarly, he said, China, Philippines, Sri Lanka and Indonesia could also prove big market for Pakistani rice and suggested to the minister to lead a rice exporters delegation to these countries.
The REAP chairman also raised some demands and sought concessions from the minister with regard to reducing withholding tax on rice export from 1.25 per cent to 0.25 per cent and to abolish sales tax on new and reconditioned rice machinery needed for processing, polishing and packing.
Abdul Rahim Janoo also asked the minister to arrange loans at 2 per cent per annum on all parboil plants i.e. on import, land and construction as this will assist in recapturing the lost Saudi market in which Pakistan’s share has dropped from 54 per cent to just 11 per cent.