Domestic prices in Pakistan to go up

Rice prices are expected to increase in the domestic market on the back of growing export demand of the commodity and a shortfall of almost 2.5 percent of the crop as rains have damaged paddy-growing areas of the province.

Traders and exporters of the commodity told Daily Times on Wednesday that the rising interest of foreign buyers in mixed varieties of Basmati and Irri-6 has contributed to the increase in the rice price at the local markets.

They said that due to better prices offered by international buyers, exporters availed the opportunity and enhanced their exports rather than selling the commodity in the domestic market.

"We are exporting rice to Dubai, Saudi Arab, East, South Africa and West African countries, USA and other states on better rates," said.Haji Majeed, an exporter.

Super Basmati export price ranges between $800 to $860 metric tonne, while varieties of Irri range between $298-$300 a tonne, he said.

Mr Majeed said that mixed varieties of export quality rice ranged between $550 per metric tonne to $850 per metric tonne, thus it gives a better price to the exporters.

The country exported around 866,715 metric tonnes Basmati rice during July-May 2007 stood as compared to 749,057 metric tonne in the same period last year.

During July-May 2007, the export of all other qualities of rice stood at 2065,560 metric tones.

While in May 2007 alone, the export of all other qualities was 155,417 metric tonnes and Basmati exports stood at 98,028 metric tonnes.

Domestically, rice of different qualities is available between Rs 35 per kg to Rs 75 per kg at the retail level. The country is likely to face a shortfall of around 2.5 percent yield of rice this season, in all different varieties of Basmati rice, Irri, growers said.

The lower production will be due to rains in lower part of Sindh and Punjab at the time of sowing of the crop, which might affect the production.

The shifting area to sugarcane crop, because of better price offered by the millers to the growers last year also remained a contributor to the lower yield of rice.

Chairman of the Sindh Abadgar Board, Abdul Majeed Nizamani said that the rice belt comprising of districts Larkana, Qambar-Shahdadkot, Jacobabad Shikarpur and parts of Dadu, irrigated by the Kotri Barrage, on the right bank of the Indus River were the worst sufferers.

The region produces different varieties of rice, including Basmati and Irri-6 on an area almost 450,000 producing almost 1,412,000 tonnes of rice.

Over an area of 80,000-90,000 acres of highly fertile land in these districts has been damaged as waters have inundated paddy fields.

At the same time he complained that the Sindh irrigation department had blocked most of its canals located on the left bank of the Indus River. This was causing shortage of irrigation water in the area.