ISLAMABAD, Aug 5: Trading Corporation of Pakistan (TCP) sold 5,000 tons of IRRI rice at Rs9,505 per ton on Tuesday, a senior official at the commodity trading agency said.

A Karachi-based exporter, Trademan, made the highest bid for the IRRI rice, which was originally destined for Iraq in a government-to-government deal several months ago.

But the deal fell through after the US-led war against Baghdad and the rice was offered for open tender on July 28.

“It was a small quantity, but we got a good price,” the official told Reuters by telephone from Karachi.

Traders in Karachi said the rice would be exported to Kenya and the Philippines, as the exporter had to meet previous commitments.

“The buying price is on the higher side because there was a very small quantity of rice available on the market, while a few exporters still have old commitments to meet,” a rice exporter in Karachi said.

In the local market on Monday, IRRI rice, which is inferior in quality to basmati, was fetching between Rs9,300 and Rs9,400 per ton.

Pakistan’s rice export season is almost complete and trade is limited due to low stocks.

Market activity usually picks up from September on the back of arrivals from the new crop, but crop damage in Sindh due to heavy floods has delayed fresh arrivals.

Agriculture officials said rains had damaged at least 15 to 20 per cent of IRRI rice varieties.

Pakistan aimed to produce 2.275 million tons of IRRI rice during the 2003/04 (April-Nov) crop season, all of it in Sindh, while the country estimates total rice output at 4.3 million tons during the crop year.—Reuters