MINCOM URGED TO PLAN STRATEGY BEFORE NEW CROPS ARRIVAL

The Union of Small and Medium Enterprises (UNISAME) has sent an urgent message to the Ministry of Commerce (MINCOM) to convene an urgent meeting to comprehend requirements of commodities exporters in lieu of the new crops arrival immediately after the rainy season.

President UNISAME Zulfikar Thaver invited the attention of the secretary MINCOM to the predicament of the exporters of rice, wheat, maize sugar, spices and other commodities.
The SMEs are facing tough times due to global slowdown. On top of it the new arrivals immediately after the rainy season will flood the markets with bumper crops against low demand which is going to be a serious issue

Thaver urged the secretary MINCOM to act prudently and do his homework thoroughly to overcome the situation.

He emphasized the need to stimulate the Trade Development Authority of Pakistan (TDAP) to act fast and tap non traditional markets and simultaneously arrange export credit guarantee insurance at low premium to enable the exporters to obtain bank finance against insurance.

He pointed out that the commercial banks are reluctant to discount bills of third world countries and banks of low rating at the same time our competing countries are securing their shippers and have made the banks comfortable by providing insurance cover.

Thirdly the union chief said it is very important that the SME sector is promoted as it is the SME sector which does the value addition of agricultural produce in rice ,wheat, maize, sugarcane, spices and cotton.

It is very necessary for MINCOM to co-ordinate with the ministries of agriculture and industries and work before hand to safe guard the interest of the SME farmers, processors and exporters.

The UNISAME experts said that they fail to understand the lethargy of the government in providing guidance, monitoring, evaluating and taking remedial measures.

There is vast scope of growing pulses in the country , even then the country is importing pulses.
Our crop of rice can be improved by developing new seeds but yet our research department is not active in this direction. Likewise we can do value addition in maize, wheat, cotton and sugarcane.

The MINCOM has banned the export of Jaggery although we have ample sugarcane and there are many such decisions of MINCOM which are baffling for the sector to understand the behavior of the ministries.

UNISAME has therefore urged MINCOM to do brain storming with the stakeholders and plan and programme vigorously to boost exports.

There should be no duty on packing materials, farm inputs, alternate energy devices and smooth and swift logistics must be ensured to SME farmers, processors and exporters under modern collateral management systems said the experts.

The Small and Medium Enterprises Development Authority (SMEDA) needs to take cognisance of the situation and invoke the MINCOM and other ministries to act fast and be wise before the adverse situation.

The budget proposals submitted by the union every year need to be taken seriously and the sector needs to be facilitated with finance, technical and marketing support reiterated the Unisame experts.

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