Union of Small and Medium Enterprises invites attention of Director General Trade Development Authority of Pakistan, Governor State Bank of Pakistan and Pakistan Standard Quality Control Authority to fall in rice exports

Karachi, May 23, 2013 (PPI-OT): The Union of Small and Medium Enterprises (UNISAME) invited the attention of director general (DG) Trade Development Authority of Pakistan (TDAP) Abdul Karim Daudpota, governor State Bank of Pakistan (SBP) and the Pakistan Standard Quality Control Authority (PSQCA) to the fall in rice exports and inability to achieve target mainly due to neglect of the SME rice exporters and processors who have been thrown out of business.

President UNISAME Zulfikar Thaver pointed out that only USD 1.50 billions rice has been exported during the period July 2012 to April 2013 and a quantity of 2.95 million tons has been exported. With only May and June remaining for the fiscal year to end, this is indeed a sorry state of affairs.

The rice exporters have exported 2.47 million tons of non basmati and only 0.47 million ton of basmati during the 10 months from July 2012 to April 2013 mainly because of lack of support from the concerned to the issue of the SME rice exporters.

Thaver said until and unless the issues of the SME farmers together with the SME rice exporters are resolved rice exports will not pick up.

He said to gear up the rice exports the entire supply chain needs to be rejuvenated from the farm level to the post shipment level. The sector needs to reinforced sowing to harvesting at the farm level and then the milling, processing. packing and shipments.

The PSQCA needs to enforce its standards and specifications and play its role and disarm the Quality Review Committee (QRC) which has failed miserably as it is a hurdle for the exporters and has no role to play at the farm level which is principally the mother of the supply chain.

TDAP which is collecting 0.25% export development surcharge needs to work jointly with others and study the entire supply chain and encourage the supply of quality seeds, discourage premature harvesting, promote paddy dryers.

TDAP needs to convene a joint meeting of SBP, PSQCA and the Rice Exporters Association of Pakistan (REAP) to study the issues of the SMEs namely high cost of production due to costly inputs, inferior supplies from millers due to no check on them.

The TDAP will need to persuade the SBP to facilitate the rice exporters financing of bills drawn on buyers of third world countries and banks of low rating under sovereign guarantee for country failure. Finance the SMEs against post shipment documents and accept them as collateral and on positive cash flows. Arrange for currency swap with Iran and other neighbouring countries without loss of time.

The union invited the attention of the TDAP that the target for 2012-2013 was set at 4 million tons to earn USD 3 billions but unfortunately the targets have not been met due to closure of the SME units who have been deprived of energy, finance, proper supplies and moreover the speculators, profiteers and hoarders who have been blocking regular supplies and themselves indulging in border trade.

For more information, Contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street,
Phase IV, D.H.A., Karachi, Pakistan
Phones: + 92 35884225 and 6
Cell: + 92 300 8245307 and + 92 321 8245307
Fax: + 92 35380642
Email: unisame@gmail.com

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