Sunday, November 02, 2008
By Jawwad Rizvi
LAHORE: The government should ensure that farmers get the indicative minimum price of paddy at around Rs1,500 per maund as its price has dropped to Rs1,200 in the different grain markets of Punjab.The arrival of Super Basmati paddy started last week and its prices have not increased from Rs1,300 per maund instead they have dropped with the inflow of crop.The situation will further worsen if the government does not intervene the market, and farmer may not be able to get even minimum price announced by the federal government.“This is the right time for the government to intervene and help stabilise prices, otherwise coming wheat crop would also be hit hard if farmers could not get a suitable compensation for their produce,” said the Basmati Growers Association (BGA) President, Hamid Malhi.The representative body of basmati growers has demanded government to provide equitable returns and level playing filed to basmati growers. The federal government has announced Rs1,500 per 40 kilogram for Super Basmati paddy despite the growers’ demand of Rs2,000 per 40 kilogram.On the other hand PASSCO has not procured even a single grain of IRRI-6 despite almost one month has passed since the rice variety has arrived in the market. He said that in such scenario when PASSCO has not started IRRI-6 paddy procurement the federal government should facilitate the corporation.The rising costs of production have fleeced the farmer and now he is being left at the mercy of exploitative forces. The government should intervene immediately to save this $4 billion crop and export the same for bridging its foreign exchange needs. The timely action will have a dual positive impact on the economy.Malhi has pointed out that the Basmati Rice is being exported at much higher rates as compared to the rates of Basmati Rice in the domestic market. The exports of Basmati during 2007-08 have also increase by 20 per cent in quantity. Average export price of Basmati during May-September 2008 was $1577.11 per tonne while current export price is $1331.52 per tonne as the country has exported some 82 tonne rice during the last one week at current price.He said the Basmati growers are not asking the government to provide relief from its exchequer but to give due share of growers. He said that the dealers will purchase paddy from the growers at lower rates while taking their margin will sold it relatively higher rates to exporters. The current export rate is $1331.52 and if converted into the rupees then it is over Rs4000 per maund. Thus the growers are asking their share from it, he added.He claimed that Basmati rice was being exported at present at Rs4500 per maund, while prices of Basmati rice in the domestic market was Rs3000 per maund. He said that millers get 22 kilograms of rice and 3-4 kilograms of broken rice besides powder and other by products out of one maund of paddy.BGA has urged the government to pay attention towards declining trend in Super Basmati paddy prices and observed that government can earn $3 billion by ensuring export of 75 per cent of the total production of basmati at the rate of US$1500.And if the government could ensure export of 75 per cent of the total 2.7 million tonnes production of Basmati rice, it could fetch precious foreign exchange for the country. He said that the government should not look towards other to get the most wanted foreign exchange and instead pay attention towards export of this commodity.He said that farmers could not sell their produce below than this rate as input cost had increased. He also alleged that Minimum Export Price (MEP) was waived off to conceal the actual export prices and under invoicing. He claimed that basmati rice was still being exported at US$1700 per tonne but it was shown less in the domestic market to loot the farmers.
It was published on Sunday November 02 in The News Business Pages
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