Pakistani rice prices slipped over the past week and dealers said on Tuesday they would slide more in days ahead as exporters were finding it hard to get orders at the current levels.
"International prices are falling. Vietnam is offering rice at much lower rates compared to Pakistan, which is not getting orders because of high price of its commodity," Haji Abdul Majeed, a leading exporter, told Reuters.
Pakistani exporters are now offering 25 percent broken rice at around $230 a tonne, compared with $236 last week in an attempt to get some orders, dealers said.
"But Vietnamese rice is still cheaper at $210," Majeed said. "In the coming days rates will slip further."
Dealers said mills and traders had about 350,000 tonnes of unsold stocks but a boost in exports was not possible until prices fall to around 1,150 rupees (100 kg) from the current 1,225 rupees.
Pakistan government estimates domestic output of 4.3 million tonnes of rice in the 2003/04 crop year, including a target of 2.28 million tonnes of IRRI varieties of rice.
The main buyers of Pakistani rice are Iraq, Sri Lanka, Bangladesh and East African countries.
Traders said the export outlook of aromatic Basmati rice remained bullish as exporters were getting buying orders from the oil-rich Middle Eastern countries.
The government said it hopes to export 1.9 million tonnes in the fiscal year to June 30, against the previous year's 1.72 million tonnes. Annual domestic demand is 2.3 million tonnes.