KARACHI, Nov 15: Pakistan’s rice exports are likely to rise on increasing supplies from the new crop, and sellers expect higher overseas demand in December, dealers said on Tuesday. Export prices were steady during the past week as domestic rates were higher. But domestic prices are expected to drop with more new crop rice available.

“Supplies from the new crop are increasing and will pull local rates down and help exporters increase exports,” said a Karachi-based exporter.

Pakistan expects a crop of more than five million tons, against last year’s 4.8 million tons. Annual domestic consumption is about 2.3 million tons.

Dealers said at present domestic price levels, exporters were facing difficulty competing in world markets, where prices have slipped because of higher worldwide supplies.

“We expect local prices to come down to a reasonable level as new crop arrivals have peaked,” said a dealer at a major rice export house.

The dealer said good crops in several Asian countries had pushed down prices and demand.—Reuters