Pakistan: rice prices soar in domestic markets

Pakistani rice prices again started soaring in the local markets following the several factors, dealers at the Karachi Grain and Seeds Merchant and Karachi Wholesale Grocers Association (KWGA) said on Wednesday. Commenting on the fresh flare-up in rice prices, they said that one of the leading factors behind the rise in the prices of rice was rise in export of the commodity as the country fetches higher foreign exchange.

They said that the other major reason was fall in production of rice in the country, and in India as well. Due to this factor, the demand for local rice had shot up in the international markets. Just in a short period of time the prices went up and caused jitters among local consumers. Pakistan is exporting good and medium quality rice to Middle East countries and low quality to most African countries, dealers.

They said that the government was exporting rice despite the fact that they were facing shortage problem, which was causing upward trend in the prices. Some dealers said that every year it was observed that when the budget date neared, profit-takers started hoarding the commodity items and other essentials to fetch better earning after budget announcement.

According to official figures, usually the country produces around 5.8 million tons rice of different varieties a year and consumption stands at 2.3 million tons, showing a surplus of 3.5 million tons, which could be exported after meeting local consumption requirements.

In the wholesale market here, Irri-9 Sindh, low type, gained Rs 400 to Rs 2600 and good type rose by Rs 350 to Rs 2700; Basmati/D-98 Shahdadkot went up by Rs 500 to Rs 4100-4200, they said.

Basmati/D-98 bagr Jee gained the same amount at the rate. Basmati No 386 was higher by Rs 400 to Rs 4100-4200. Super Basmati Sindh was up by Rs 400 to Rs 4200-4400. Sela Basmati was sharply higher by Rs 1000 to Rs 5200-5400, super Karnal basmati old low type was up by Rs 500 to Rs 5200 and good type was higher by Rs 60 to Rs 5400.

Super Karnal new rose by Rs 500 to Rs 4700-4800 and Basmati rice (broken) was up by Rs 200 to Rs 2400-2700, they said. Focusing on the Economic Co-ordination Committee (ECC) move in which it suspended wheat export, the dealers welcomed the decision because wheat is staple diet here, and the country could face shortage in the near future, resulting in high rise in prices.

They said that flour mills, after observing sharp rise in the prices of wheat, started demanding ban on exports of wheat. But as rice is not staple diet here, the government may not intervene in rice exports process.

According to a news report, according to a senior government official, the country has suspended wheat exports with immediate effect due to a surge in domestic prices. The decision was taken at a meeting of the Economic Co-ordination Committee (ECC).

The ECC suspended wheat export until further orders. This is meant to control rising wheat prices in the local markets, Mohammad Ismail Qureshi, permanent secretary of Ministry of Food and Agriculture, told Reuters.

Reuters