KARACHI, April 9: Prices of all varieties of rice soared to historic high on Wednesday, pushed by sustained demand from hoarders, speculators and profiteers.

The Irri-9 price surged by Rs3,000 in the last two days to Rs43,000 per ton. Similarly, D-98 rice, grown in Sindh, soared by Rs2,000 to Rs52,000 per ton. Irri-6 (coarse rice), which is mostly exported, finished at Rs35,000 per ton. Its price has doubled just in six months from around Rs16,000 per ton.

The price of super Basmati rice (new crop) has also increased by Rs3,000 in the last few days to Rs63,000 per ton. The Basmati is also exported in a large quantity to the Middle East and European countries. The super Basmati (old crop) is available at Rs68,000 per ton in the wholesale market and its retail price is Rs75 to Rs85 per kg.

The price of P-386 rice, which has been banned for cultivation, also went up to Rs52,000 from Rs25,000 per ton about six months ago.

Sources said that rice prices were continuously surging and if the current buying spree continued, the commodity would soon disappear from the market.

Analysts believe that higher world market prices are influencing the domestic market because exporters want to enhance the quantum of exports to maximise their profits.

Following the global hike in rice prices, many countries have reviewed policies by taking appropriate measures to ensure smooth supply in their domestic markets. India, China, Vietnam, Cambodia and Egypt have restricted rice exports to protect their stocks and curb food inflation.

The World Food Programme has already warned of riots on soaring food prices in the poor countries.

However, in Pakistan banking sector provides discounted mark-up on export of rice which directly benefits the importing country at the cost of domestic consumers. Consequently, there was greater need to withdraw banking finance for essential commodities, the analysts said.

A leading rice dealer told Dawn that there was greater need to take administrative measures to check hoarding in order to control rising food inflation.