ZAHID BAIG

LAHORE: The Rice Exporters Association of Pakistan (REAP) has lodged strong protest with the Trading Corporation of Pakistan (TCP) on increase in rice inspection fee twice in a year.

In a letter to the TCP officials, the Association said 100 percent increase in rice inspection fee in one year is also unacceptable as the stakeholders were not consulted before taking this decision.

The Association further said they were the country’s second biggest trade association having 1300 members on its panel playing their role in enhancing exports even under unfavorable circumstances. “Our organization is supporting our valued members because of which our trade this year has exceeded target of 2 billion US dollars and played our role in boosting foreign reserve of the country,” said a letter written to the Trade Corporation of Pakistan (TCP) by the REAP.

The letter said that the Corporation first increased its inspection fee in February 2018 when the fee was enhanced from Rs2000 to Rs3000 per container and later in start of current month to Rs5000 per container under heads of management expenses. “Our Trade is already facing huge competition with India due to high cost of production and feeble support by state departments and the current decision will further worsen the situation. Appreciations and depreciations in currency used to happen at global levels but fee structures are not changed so abruptly. Even in 2013 when our currency was appreciated from US$109 to US$97 inflicting substantial losses to the industry, no department come up with decrease of fee to support it. We also didn’t raise any reservation or placed any request to any state department therefore we expect the same in prevailing circumstances,” the letter observed.

The Association said that increment in fee for the second time in a year will seriously affect trade of Super Basmati Brown Rice having volume of around 180,000 tons in European Region. The Indians are already posting competitive quotation in the same product range but it is thorough professionalism and excellent marketing of our Super Basmati that its volume is not only sustaining but gradually increasing. Trade of this segment is already under strict monitoring by the buyers that each lot is sealed by third party (Eurofin/SGS) and tested against physical, chemical and biological requirements and permitted to load produce only, which shows compliant results to set standard.

The Association further said that its members were already paying traveling allowance to the TCP representative to reduce burden from department on per trip basis but applying the same on per container basis is beyond acceptance and digestion by the rice exporters. “Only 05% members are located within city of Lahore and Karachi while most of exporters are situated distantly from offices of TCP and traveling allowance is paid accordingly,” the letter added.