Pakistani rice prices rise on low stocks

23 Jun, 2004

Pakistani rice prices gained again over the past week on low stocks, which halted exports and dealers said on Tuesday that the activity would remain dull until supplies from the new crop starts.
"The domestic prices have further gone up on low stocks," Akbar Hashwani, a leading rice dealer, told Reuters. "We have only around 50,000 tonnes of rice available - enough to meet the domestic demand."
Dealers said exports had stopped, but some supplies were still being made to neighbouring Afghanistan through unofficial channels.
War-devastated Afghanistan is heavily dependent on Pakistan for its food supplies. The bulk of trade is being carried out through unofficial channels through the porous border between the two countries.
Hashwani said activity would remain dull until supplies from the new crop starts in late September or the early October.
Pakistan's crop year runs from April to November. Sowing normally starts in mid-April and harvesting begins in September, but peaks in October.
Dealers said the sowing area of IRRI-9 and IRRI-6 quality had expanded at the cost of other low-quality rice which did not attract exporters.
Pakistani traders were quoting export prices of $255-$256 per tonne for IRRI-6 variety, around $65 higher than other countries.
Dealers said they expect the prices to rise further.
Rice output for the current fiscal year to June 30 is expected to be around 4.2 million tonnes, compared with domestic consumption of more than 2.0 million.
Around 1.8 million tonnes were exported during the current fiscal year, against last year's 1.72 million.
Dealers on Wednesday quoted 100-kg bags of IRRI-6 variety at 1,330/1,355 rupees, up from the previous week's price of 1,320/1,350 rupees.

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