KARACHI, Feb 24: All varieties of rice in the domestic market have surged by an average Rs10 per kg because of high demand from the exporting side.

However, the prices tumbled down by Rs2 per kg in the wholesale market in last two days as high prices had resulted in slow lifting of the commodity.

The Rs2 per kg fall in rice prices has yet to be reflected at the retail level as retailers have always been quick enough in increasing the rates immediately and adopt dilly-dallying tactics in curtailing the rates.

The basmati premium price surged to Rs55-60 per kg at the retail level from Rs46 per kg few days back while basmati broken jumped to Rs28 from Rs22 per kg. Irri 6 rice is tagged at Rs22 from Rs16 while Dhamaka basmati rice is now selling at Rs65 from Rs50 per kg.

Karachi Retail Grocers Group (KRGG) General Secretary Muhammad Farid Qureishi said the prices would come down in next few days when retailers would lift rice at reduced rates from the wholesalers.

However, he said that following increase in prices consumers had curtailed rice buying.

Chairman Karachi Wholesaler Grocers Association (KWGA) Anis Majeed attributed the price hike to sudden jump in demand of Pakistani rice in the world markets because of low crop output of Indian rice.

He said even Indian exporters, based in Dubai, were lifting Pakistani rice in bulk and selling it as “Made-in India” in world markets. However, he said that local exporters were now fetching good price which would help them achieved their export targets.

Market sources said traders and hoarders lifted the commodity in bulk quantities weeks back at low rates in order to cash in on the situation.

Rice Exporters Association of Pakistan (REAP) Chairman Aziz Maniya said the rice rates had plummeted by Rs2 per kg in the wholesale market as the demand had slowed down because of phenomenal jump in rates.

There has been, he pointed out, a shortage of rice especially basmati rice in the world markets. India, a major exporter of basmati, is faced with a shortfall of 25 per cent in its basmati crop. It produces two million tons of basmati of which over 50 per cent is exported.

In Pakistan, he said, according to government estimates the basmati production is projected to fall by 10-15 per cent this season compared to last year’s output owing to heavy rains and strong winds at the end of 2006. Even all other rice varieties’ output is estimated to fall by 15 per cent.

Out of total rice production of 5.35 million tons in 2005-2006, exporters shipped 2.7 million tons in which 900,000 tons was basmati (mainly to Iran and the Middle East), while the rest comprised of non-basmati products. Overall rice exports earned $1.2 billion in terms of foreign exchange in 2005-2006.

He said the government was expecting 5.4 million tons of rice production in 2006-2007 despite fear of 15 per cent shortfall in crop production. Exporters are planning to fetch earning of $1.275 billion in the current fiscal.

“We may be sending low quantities in this fiscal but we are getting good price which will help improve the export earning figures in terms of value,” Maniya said.