Regulatory Duty on pulses export: 25 boxes of yellow peas stuck up at Karachi port

Karachi: Some 25 containers of yellow split peas, worth $0.2 million have been stuck up at Karachi port due to sudden imposition of 35 percent regulatory duty on export of pulses, sources told Business Recorder on Sunday.

They said that some 25 containers holding around 625 metric tons of pulses were stuck up suddenly when the said consignment reached Karachi port on May 18 for examination and shipment to different countries, as the government had slapped 35 percent regulatory duty on their export.

'We had already signed contracts of yellow split peas (pulses) of approximately 15,000 tons worth nearly $4.5 million with different countries, including United Arab Emirates (UAE), India, Bangladesh and Sri Lanka,' said an exporter.

The exporters are perplexed over the situation in which the containers are stuck up at the port, as some of the exporters have received advance payment and some have already shipped 50 percent of the orders and their payments would be cleared only when the remaining consignments would be dispatched.

'We have also received Letters of Credit (LCs) from our buyers and now we are bound to dispatch the already booked consignments,' he added.

Another exporter whose containers are also piled up at the port, said, 'If we do not ship the commodity, then the orders would not be cancelled, but we would have to pay additional Rs 6 per kg.'

The people associated with export of pulses are confused over the situation as they believe that the government should have informed them prior to any imposition and should have allowed exporters to ship their already booked orders.

'In our trade, orders are not cancelled,' said an exporter, adding that the exporters have to send the consignments at any cost and, in the current scenario, they (exporters) fear that they would have to pay additional amount for getting the consignments dispatched.

He regrettably said that the image of the country would also be portrayed as 'bad' if anyone does not fulfil the export orders within the specified time.

Karachi Wholesale Grocers' Group (KWGG) has also argued with the government over the regulatory duty issue and has demanded that the government should allow exporters to ship their already booked orders.

'Whenever any policy is announced, it must have 'flexibility' and 'cushion'. Nevertheless, this time the government issued an SRO and slapped 35 percent regulatory duty on export of pulses with immediate effect which has badly affected those who had committed their buyers for the supply pulses,' said Anis Majeed, advisor to KWGG.

He dispelled the impression that prices of pulses in the country have touched the peak and in this situation exporters are unfair with the masses by exporting the commodity to other countries.

'Actually, we used to import whole yellow peas from Canada and then by passing it through different processes; we prepare yellow split peas (pulse) for export to different countries. Therefore, the allegation of exporting precious commodity is baseless,' he said.

'Whole yellow peas is the product of Canada and it is not produced in our country,' he said and added: 'We used to import whole yellow peas at the rate of $200 per ton to $225 per ton and then exported to other countries at $325 per ton. In this way, we contributed a handsome value-addition to the national exchequer.'

Exporters have claimed that 95 percent of the pulses export is of yellow split peas, and other pulses, which are commonly used in the country, are hardly 5 percent, which may not be allowed to be exported.

While giving reference to the international conference on pulses 'CICILS/IPTIC', held in Goa (India) on May 18-19, Anis Majeed said that production of pulses had declined not only in Pakistan but also in other countries around the globe.

'Non-availability of water and untimely downpour mainly hit the crop this year all over the world,' he said, adding that 'Pakistan is now importing moong pulse