KARACHI: Wholesale prices of rice have been on the slide since 2013-14, but retailers are reluctant to pass on the benefit to consumers.
Prices of various varieties of rice are falling mainly because of good crop and surplus stocks in the market, said Malik Zulfiqar Ali, senior vice chairman of the Karachi Wholesale Grocers Association (KWGA).
Take a look: Depressed price of new rice crop
Rates fell by Rs10-15 per kg of all the varieties in 2014-15 and Rs20-25 per kg in 2013-14. The wholesale price of Super Basmati rice has fallen to Rs80 per kg now from Rs120-130 in 2013-14, while Kainat Basmati is now available at Rs100 per kg compared to Rs150 per kg.
Basmati-386 price fell to Rs40 from Rs60-65 per kg. Its new crop is now quoted at Rs32-35 per kg. Another variety of high quality basmati is now selling at Rs80 per kg in Dandia Bazaar as compared to Rs120 earlier this year. The wholesale price of Irri-6 is Rs28-30 per kg against Rs38-40 in 2013-14.
Ali said huge quantity of basmati is finding its way into markets because of a slowdown in its exports since 2013-14.
“The government should do something for rice growers and provide incentives to them,” he said. “It should also help exporters by giving some subsidy or rebate.” He said India is selling its rice at lower price which is also affecting Pakistan’s exports.
Retailers, on the other hand, are capitalising on the lack of consumers’ awareness about wholesale prices. They have kept the rate of Super Basmati in the range of Rs160-170 per kg while for No.2 quality they charge Rs140-150. Moreover, consumers usually do not have an eye for detecting the mixing of rice qualities by retailers.
In July-August 2015-16, basmati exports fell to $70 million (57,540 tonnes) from $86m (66,833 tonnes) a year ago. In 2014-15, basmati exports fell to 490,831 tonnes ($587m) from 667,523 tonnes ($770m) in 2013-14.
In other rice varieties, exporters shipped lower quantities in July-August 2014-15 but fetched good price. By contrast in the first two months of this fiscal year, exporters earned low price despite sending higher quantities.
According to the Pakistan Bureau of Statistics, exports of other varieties rose to 338,659 tonnes ($143m) in July-August 2015-16 from 281,251 ($144m).
However, exports of other varieties rose to 3.29m tonnes ($1.44 billion) in 2014-15 from 3.04m ($1.4bn) in 2013-14.
Published in Dawn, October 15th, 2015
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