Pakistani rice prices were steady in the week to Tuesday on improved supply but dealers said prices were now likely to rise on strong demand from exporters. "Prices are steady as supply rose. But demand from exporters is likely to keep the market bullish," said Abdul Majeed, a dealer in Karachi.
Dealers said demand in the international market was strong and over a dozen vessels were reported loading at Karachi's port with shipments mostly to the Middle East, Africa and Sri Lanka.
"Exports are set to shoot up further in December as international buyers are looking to Pakistan for supplies," another dealer said.
Demand from Sri Lanka for IRRI-6 rice had also supported domestic prices, which saw a significant fall in the second week of October as fresh arrivals weighed on rates, the second dealer said.
Pakistan exporters had finalised orders of at least 65,000 tonnes of IRRI-6 rice for Sri Lanka at $245 to $250 C&F per tonne.
Exporters said Sri Lanka could buy 100,000-150,000 tonnes of IRRI rice from Pakistan this season.
Pakistan expects output to exceed 4.6 million tonnes in 2003/04, compared with four million last year, leaving more than 2.4 million tonnes for export.
Pakistan's crop year runs from April to November.
Sowing normally starts in mid-April and the main harvest begins in September, peaking in November.
Traders quoted FOB prices for IRRI-6 variety at $223/225 per tonne.
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