KARACHI: The retail prices of various varieties of rice have been increased by up to Rs40 per kilo almost a month before Ramazan.
Traders claim that the prices have been raised due to rise in exports and high transportation cost.
The retail price of medium quality basmati is now Rs200 as compared to Rs160 per kg while normal basmati is selling at Rs150-160 instead of Rs120-130 per kg. Premium basmati is now priced at Rs250 per kg.
A biryani shop owner said he had to pass on the impact of price hike of at least Rs10 per plate to customers as he was compelled to procure basmati Sella rice at Rs20-30 per kg higher rate from wholesale markets.
Traders blame high rates on rising exports
He said he sold a biryani plate at Rs130. “Some other outlet owners are selling at Rs140 per plate depending on the area.”
In bigger food shops, premium basmati rice biryani (double plate) is being sold at Rs300-330 and single plate at Rs170-200.
While it is not easy for a buyer to judge the quality of rice in biryani, traders and biryani restaurants take full advantage of this ignorance by mixing various varieties.
General secretary of the Karachi Retail Grocers Group (KRGG) Farid Qureishi said that price jump in basmati and other varieties of rice was not a matter of concern for the rich who continued to buy expensive commodities without any problem in higher quantities for monthly consumption.
He said, however, the lower and middle income groups, who are hit hard by rising food inflation and utility bills, had been limiting their buying as per their requirement.
A member of the Rice Exporters Association of Pakistan (REAP), Anis Majeed, said that despite a drop in transportation cost after Rs10 reduction cut in fuel rates on March 1, rice prices had been soaring owing to previous massive hikes in transportation cost because of diesel and petrol rates.
He said exports were in full swing, thus putting pressure on local prices despite the fact that exports were made at a very low wholesale rates.
Rupee devaluation against the dollar is certainly benefiting exports. Pakistan’s rice production is over seven million tonnes per annum in which exports have been hovering between 3.5 and four million tonnes while the rest is consumed domestically.
Export destinations are Europe, Gulf countries, Australia, US, China, African countries, the Far East, etc.
According to figures of the Pakistan Bureau of Statistics, basmati exports rose by 41pc and 414,190 tonnes of rice were exported in seven months of fiscal year 2022 from 293,761 tonnes in the same period of the last fiscal year.
In terms of value, it is a jump of 28per cent, i.e., $362 million from $282 million.
Other varieties of exports grew by 13pc, 2.138m tonnes from 1.886mn tonnes, while it went up by 5.56pc in terms of value, $924mn from $876mn, in seven months of fiscal year 2021.
Mr Anis said due to massive hike in freight rates and lack of availability of shipping containers, rice exporters had chartered two to three bulk vessels destined for African countries in the last three months to load rice cargo in these vessels. Each vessel had carried 35,000-40,000 tonnes of rice. Besides, demand from China for Pakistani rice also remained high.
In financial year 2021, export of other varieties had plunged to 3.062 million tonnes fetching $1.465 billion as compared to 3.3 million tonnes valuing $1.39bn in FY20.
Basmati exports earned $575 million from 629,069 tonnes in FY21 from 865,949 tonnes earning $783mn in FY20.
Rice exports in FY21 remained subdued due to low price offered by India for non basmati and higher freight charges from October 2020 amid Covid-19 pandemic. However Chinese buying of Pakistani non basmati rice kept the exports moving.
Published in Dawn, March 12th, 2022