July 26, 2007	Thursday	Rajab 10, 1428

ISLAMABAD, July 25: There are chances of further increase in prices of all varieties of rice in the coming weeks after it was officially confirmed that monsoon rains had damaged the crop severely in Sindh, sources told Dawn on Wednesday.

The data collected by Sindh government and sent to the federal ministry of food, agriculture and livestock (Minfal) revealed that the damage to the crops caused by floods had brought down production by 200,000 tons in the province.

Sources said the Minfal had expressed its concerns over such huge damages to the crop in Sindh. They said the crop had also been damaged in Balochistan.

This year prices of basmati rice had jumped to Rs45-50 per kg compared to Rs30-32 last year, showing an increase of Rs13-15 per kg.

Similarly, the prices of Irri 6 rice have risen to Rs19-20 from Rs13 last year.

The government was expecting decrease in rice prices after the production target had been achieved.

However, sources said, the Minfal is also thinking revising downward the final production estimates. The rice production target for 2007-08 is 5.7 million tons compared to 5.43 million tons achieved in 2006-07.“We will not be able to achieve the 5.7million tons target this year after such huge damages and the prices of rice are likely to go up,” an official of Minfal told Dawn. He said the final figures could be lower than expected.

Being a high-value cash crop and a major export item, rice accounts for 5.7 per cent of the total value added farm produce and 1.2 per cent of the country’s GDP.

Last year, the government had initially set a production target of 5.693million tons, which had to be revised downward after the crop was hit by rains in lower part of Sindh and Punjab.

When contacted Minfal Rice Commissioner Inayatullah Khan confirmed the crop losses in Sindh and said there was also some damage to the rice crop in Balochistan.