PASSCO-procured rice to be exported on govt-to-govt basis

Friday, November 14, 2008
By Jawwad Rizvi

LAHORE: Paddy procured by the Pakistan Agriculture Storage and Services Corporation (PASSCO) will be exported on government-to-government basis.
The Rice Exporters Association of Pakistan (REAP) exports rice from Pakistan, while the federal government has decided to export this grain itself first time.
The decision was made in a meeting held here at PASSCO headquarters Thursday. The meeting was chaired by the Federal Minister for Food Agriculture and Livestock (MINFAL) Nazar Muhammad Gondal. The meeting was attended by Federal Secretary Ministry of Food, Agriculture and Livestock (Minfal) Zia ur Rehman, Managing Director PASSCO Maj. Gen. Anwar Saeed Khan, Chairman Basmati Growers Association Hamid Malhi and others attended the meeting.
The sources privy to the meeting revealed to The News that the government has also decided to supply some 1.5 to 2 lakh tonnes basmati rice in the local market through Utility Store Corporation in order to keep the local market prices in equilibrium. However, the total procured IRRI-6 will be exported by the government and for this the government is already planning to target the specific markets of IRRI-6.
The meeting has also discussed Sindh issues as this province is the major producer of the IRRI-6 rice variety and the international rates of this product have registered a declining trend. Almost more then 40 per cent of IRRI-6 crop is harvested in Sindh.
They disclosed that the minister has instructed the PASSCO to spread its procurement campaign to maximum range. The meeting hoped that number of rice mills in Punjab that will be husking rice procured for PASSCO would cross 100 in next two to three days as the corporation is doing agreements with them. Similarly, in Sindh the PASSCO will make agreements with almost 100 mills.
Latter, addressing a press conference MINFAL minister Nazar Muhammad Gondal announced that the federal government has decided to export rice to be procured by PASSCO. “We have decided to export rice through government-to-government agreements,” he said.
He said Pakistan produces finest quality of Basmati in the world and it is in great demand in the international market. He said Pakistan has demand of one million tonnes of Basmati from Saudi Arabia and also from Iran and matter is being negotiated.
To a query he said that production of rice in the country is expected to be around 6.2 million tonnes.
The Minister said that the government had taken the decision some two months back to buy paddy in case prices decreases in the domestic market. He said that the PASSCO had entered in to agreement with 20 rice mills to buy paddy on behalf of the Corporation at the rate of Rs1,500 per 40 kilograms for Basmati and Rs700 per 40 Kilograms for IRRI variety. The Corporation would then buy rice from these mills at the rate of Rs3,000 per 40 Kilograms Basmati and Rs1,400 per 40 Kilograms IRRI.
The minister said that to date the PASSCO had made agreements with the total 40 rice mills across the country while the corporation is aggressively doing this job and the number will increase till evening (Thursday evening). He said that target initially assigned to the PASSCO was One million tonnes (500,000 tonnes of each Basmati and IRRI). However if the need persists and rates were not stabilized, then PASSCO could got for purchase of another one million tons of rice, he added.
However, he admitted that in the first two days of the procurement no major success was achieved to the PASSCO. The PASSCO had purchased only 900 tonnes in two days, he said announcing that the procurement will pick up from Friday.
He said that mills in agreement with the Corporation had also been assured that their limits of Bank Advances would also be get enhanced to facilitate them in procurement of paddy.
Replying to another query regarding start of crushing season, he said that the sugar mills have assured the government that crushing would start between November 15 to 20. He said that outstanding dues of farmers against sugar mills were now very negligible and government put in all efforts to get the dues of farmers cleared.
Earlier the Minister chaired a meeting at PASSCO head office with regard to paddy procurement.