The Rice Exporters Association of Pakistan has warned if government bodies get involved in rice export, the private trade would come to a halt.Foreign buyers are waiting for the Pakistani government to issue tender and they expect import at low prices, Rafique Suleman, Vice Chairman REAP told The News on Thursday. He said the government bodies' intervention in rice export would be a great loss to the private sector that has invested billions of rupees in the trade.

The government after allowing export of rice to the Trading Corporation of Pakistan (TCP) in November last year, now has also allowed Pakistan Agriculture Storage and Supplies Corporation (PASSCO) to export rice to any country of the world. It was decided in a meeting of the Economic Co-ordination Committee (ECC) held on January 12.The Ministry of Food and Agriculture (MinFA) had forwarded a summary for the approval of the ECC on Jan 6 to allow PASSCO the export of rice to the Middle East, Iran, Europe or any other market on government-to-government basis.

MinFA got approval to export Super Basmati rice (five per cent broken) at $900 per tonne through qualified local and foreign agents. The Ministry of Industries & Production, Planning & Development Division of Planning Commission, Finance Division and Ministry of Commerce supported the summary. According to sources, the TCP holds 25,000 tonnes of basmati rice while PASSCO holds 90,000 tonnes of the same quality.

PASSCO and TCP on government directives had procured one million tonnes of paddy (0.5 million tonnes from Punjab and aggregate 0.5 million tonnes from Sindh and Balochistan) to support paddy growers. PASSCO procured 435,832 tonnes milled rice from rice millers on set intervention prices of Super Basmati paddy at Rs1,500 per 40kg which was converted into Rs3,000 per 40kg (Rs75 per kg) after being milled to Super Basmati rice. IRRI-6 was bought at Rs700 per 40kg which was converted into Rs1,400 per 40kg (Rs35 per kg) for milled IRRI-6 rice.

TCP bought 25,000 tonnes Super Basmati rice through tenders at Rs87 and Rs75.90 per kg and 1,500 tonnes IRRI-6 rice at Rs32.90 per kg. TCP is trying to export its held stocks since last year and had issued its first tender on October 09, 2009 but failed to receive any bid till its tender closed on November 24, 2009. Tender was re-issued on December 18, 2009 to export 25,000 tonnes of Super Basmati rice which would be opened on Jan 21 for acceptance of bids.

In order to record their protest, REAP delegation led by Vice Chairman Rafique Suleman met with Dr Ishratul Ibad, Governor of Sindh at Governor House on Wednesday. Rafique Suleman informed the governor that during July to December 2009, around 20 million tonnes of rice was exported to various countries valuing around US$1 billion. REAP asks govt to keep out of rice export.