KARACHI, April 16: Pakistani rice prices edged higher this week on depleted stocks, which had halted exports, traders said on Wednesday. They said falling stocks had forced local rice dealers to cover their positions as the new crop would not be available until September-October.
“The market is very quiet as there are very little stocks left. Our season is over,” said Haji Majeed, a rice exporter said.
Majeed said local demand had pushed prices up to a point where Pakistani exporters could not match competitors offering IRRI varieties of rice on the international market from other countries. “The prices are on the firmer side only because of the low stock position,” he added.
Another exporter said Pakistani traders were quoting export prices of $170-$172 per ton for IRRI-6 variety, while India was quoting $152-$154 per ton.
Dealers said market activity would pick up from September as arrivals from the new crop would accelerate. In the meantime, the traders had covered their stock positions until September to meet local demand. Pakistan’s rice year runs from September to March.
Pakistan’s rice exports in the first eight months of fiscal 2002/03 (July-June) were 1.23 million tons, worth $340 million, according to the Rice Exporters Association of Pakistan. Pakistan exported 2.1 million tons of rice from the 2001/02 season and has produced 3.7 million tons of rice in the current season, of which it hopes to export 1.67 million.
Dealers said the country would manage to export another 300,000 tons of rice in the remaining months of this export season ending in August, enabling it to achieve the target.
Dealers said 100-kg bags of IRRI-6 variety were quoted at 890/940 rupees, little down from the previous week.
