KARACHI, May 7: After having surged by Rs5-10 per kg in February this year, the wholesale prices of rice have again been under pressure for the last over two weeks adding Rs2-3 per kg in almost all varieties of the commodity.
Retailers have already jacked up the prices by identical amount.
When wholesale prices had reached the peak in February, retailers had pushed up the rates immediately. However, the rates tumbled down in the same month on falling demand at wholesale market, but the retailers did not show any resilience in their attitude for the consumers and kept the rates high.
Majority of consumers do not have the access to the wholesale rates and they heavily rely on the prevailing retail prices. Even many buyers do not have the expertise of identifying the quality giving the retailers open opportunity to make windfalls by selling cheap quality at higher prices.
Rice has been on fire mainly because of phenomenal growth in its exports fetching the much-needed foreign exchange and good prices for growers, but the unbridled export has resulted in sky-rocketing of prices in the domestic markets and the government has yet to come out with any measure to safeguard the interest of consumers.
The country produces around 5.8 million tons of rice a year and the consumption stands at 2.3 million tons, leaving a surplus for export.
Karachi Wholesaler Grocers Association Senior Vice-President Malik Zulfiqar Ali told Dawn that the wholesale prices of almost all varieties excluding Irri 6 and Irri 9 had gone up by Rs2-3 per kg in the last 10-15 days.
Basmati super wholesale price is Rs44-45 per kg while basmati broken rates is hovering between Rs25-30 per kg. Sindh D98 brand is selling at Rs37-38 per kg while Sindh’s basmati is selling at Rs40 per kg.
“The all-time high price of the commodity has reduced its demand as buyers have to think twice before purchasing rice,” he said, adding “lifting by the retailers has also slowed down and rice arriving from Punjab is also costlier”.
He said instead of huge sales to the local market, heavy export shipments were being dispatched to many countries, which is the sole reason in pushing up the local rates.
On retail side, basmati premium was selling at Rs60-65 per kg while broken was priced at Rs32 per kg. Irri 6 and Irri 9 were available at Rs18 and Rs23 per kg. In January, basmati premium was selling at Rs46-50 per kg while broken rice was available at Rs22 per kg.
Retailers said that consumers had started buying the commodity in small quantities following massive surge in its prices.
Hoarders and profiteers are now enjoying a field day by releasing the stocks at higher rates.
Former chairman of Rice Exporters Association of Pakistan Abdul Rahim Janoo linked the domestic price hike to rising demand of the commodity on international export market.
Talking to Dawn he said that there had been an average 40 per cent rise in prices of basmati rice in the last four to five months, while non-basmati rice prices had surged by 15 per cent.
To a question about why the local consumers are being forced to pay higher prices for the commodity owing to huge exports, he did not give a clear answer but said that “rice export has been on the way of creating a history.”
Pakistani rice has been in high demand because India’s basmati production has suffered shortfall and Vietnam has banned export of basmati rice owing to their election year. As a result, all the international buyers have turned their eyes to Pakistan.
“Our overall exports will range between $1.35-1.4 billion by the end of July-June 2006-2007 as compared to $1.2 billion in 2005-2006,” Mr Rahim said, adding that exporters had already crossed the $1.2 billion mark.
About 3.5 to 3.7 million tons of rice (1.1 million tons of basmati and 2.5 million non-basmati varieties) are exported during the current fiscal so far in this fiscal as compared with 980,000 tons of basmati and 2.5 million tons of non-basmati rice in 2005-06.
There has been an increase of 19 per cent in average unit price of rice exports. In basmati, exporters are fetching $700-770 million tons this year as compared to $625 per ton last year, while in Irri 6 shipments are being made at $260-265 per ton as compared to $225 per ton last year.
