The flash flood and heavy rains caused colossal losses to standing rice crop specially the Basmati rice in Punjab which may consequently have widespread impactions on food inflation, decline in rice export, and to the revenue collection for the government as well.

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Ishaq Dar federal finance minister (FM) to the colossal loss suffered by the rice sector due to heavy floods in Punjab which has swept away the standing crop of rice. The floods have disabled the rice sector which was already in turmoil due to high cost of production, load shedding and tough competition from neighboring country.

President UNISAME Zulfikar Thaver has urged the FM to exempt the rice sector from with holding tax to give the sector some relief.

He said by virtue of being an export industry the sector deserved tax exemption but the finance ministry had levied with holding tax since the last several years and had not spared the rice sector from taxes. Some relief could also be given to the sector by reducing import duties on rice packing materials, insecticides, pesticides, fumigation medicine and fertilizers.

Thaver called for facilitating the rice sector by removing all hurdles in all spheres and expressed surprise that although the ministry of commerce (MoC) had accepted the fact that the Quality Review Committee (QRC) was of no practical benefit to the rice industry and had advised the Trade Development Authority of Pakistan (TDAP) to submit a procedure for its closure and decided to give golden handshake to its employees and close the QRC for good. It is very strange that the government is lethargic on important issues and delays matters to the point of frustration.

He said it is very important that the MoC does not procrastinate on important issues and acts diligently in the best interest of the rice sector to enable it to meet global challenges.

The UNISAME chief also pointed out that it is apprehended that the floods God forbid could cause damage to the rice crop in Sindh and this will be unfortunate as the Irri 6 rice of Sindh is an export earner bringing in valuable foreign exchange.

The Sindh government is always wise after the event and although it was forewarned about the floods it never took concrete steps to prepare in advance.

Source - http://pakobserver.net/