Government to bailout rice sector which is collapsing:ICCI

Lahore: Islamabad Chamber of Commerce and Industry (ICCI) on Friday asked the government to bailout rice sector which is collapsing under double whammy of falling prices and harassment by the banks.

The rice sector earning over two billion of foreign exchange continue to face crisis since last two years which has taken tool on all stakeholders from growers to millers and exporters, it said.

The arrival of new crop has aggravated the situation as around five hundred thousand tonnes of rice from earlier crops couldn’t be sold or exported which is rotting in godowns, said Atif Ikram Sheikh, President ICCI.

In a statement issued here today, he said that new crop has further imbalanced the market resulting in closure of hundreds of rice mills which the remaining are struggling for survival.

The millers are unable to pay bank loans or clear outstanding amount to the farmers therefore Government and State Bank have extended date of their repayments until June 2016 but banks continue to harass rice millers to recover 30.5 billion rupees loans.

Atif Ikram Sheikh said that international market is unstable while India is replacing Pakistan which is still fourth largest rice exported in the world which has resulted in dwindling prices at home. Farmers are pushed to sell their yield at reduced price due to oversupply which is inflicting loss up to Rs 50000 per acre that is highly discouraging.

The ICCI president said that government should increase subsidy or announce support price to save farmers from market shocks.Price of all varieties of rice continue to fall from the last two years but its benefit has not been transferred to masses, he lamented.