Lack of rice storage facilities is damaging rice grain according to SBP (state bank of Pakistan). Bank asserts that Pakistan has always lost near about 10 to 35 percent of rice which is nearly 550,000 tons due to lack of warehouses. Near about thirty million tons of grains including wheat, rice and maize is produced each and year but warehousing facility is available for only 5 million tons of grains, which is risky.
Rice storage is in danger because of lack of infra and needs immediate attention; it can really adversely impact the interest of stakeholders in rice and will reduce the competitiveness of Pakistan rice in global market.
Now Govt. wants to introduce WRF that means warehouse receipt financing to make farmers, traders, processors and exporters to get a full-fledged help to formal financing, which can be a great help in arranging rice storage methods. WRF comprises representatives of banks and financial intuitions now Karachi is also collaborating in this scheme. It is estimated that Pakistan will produce 6.4 million tons of rice grain in marketing year 2013-14 still because of storage problem it is going to reduce by 3 percent. And they will be about 3.4 million tons in MY 2013-14. Domestic consumption is expected at 2.6 million tons. Pakistan Banks Association (PBA), Competitiveness Support Fund (CSF) ,Stock Exchange, Pakistan Mercantile Exchange (PMEX), Competitiveness Support Fund (CSF) and Pakistan Farmers Association all are worried about it and want to provide financial support for warehousing needs of grain.