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  • News Desk
  • Feb 2nd, 2005
  • Comments Off on Pakistani rice exports slow, prices stable
Pakistan's rice exporters continued to find demand low from traditional African markets during the past week, but domestic demand was keeping prices stable, dealers said on Tuesday. They said exporters were also unable to compete in international markets because of the high domestic prices of the export varieties.

"We simply cannot match the asking prices of international buyers. Our high local prices are hurting exports," said a Karachi-based exporter, adding that there were no fresh orders for either IRRI or Basmati varieties from African and Middle East markets.
Traders said the price increases were confusing.

"It could be hoarding, but a price hike in a slow export season is difficult to understand," another exporter said.

He said the market expected local prices would ease by end-February, when Pakistan's key competitors would be in the market with big stocks for export.

In the domestic market, IRRI-6 was quoted at around 1,335-1,350 rupees per 100-kg bag, unchanged from a week earlier. Traders quoted FOB prices for IRRI-6 at $238/240 per tonne.

Exporters said that between October and the second week of January Pakistan exported 400,000 tonnes of IRRI-6 rice.

Pakistan has said it expects its rice crop for the latest season from last April until November to exceed 4.6 million tonnes, compared with four million in the previous year, leaving more than 2.4 million tonnes for exports.

Pakistani exporters were also not hopeful about shipping big rice cargoes to the Philippines in response to a 500,000 tonne rice import tender due on March 1.

Abdul Majeed, an exporter, said tough quality conditions set by the Philippines would minimise Pakistan's chances of big business.

"Our past experiences suggest that we never succeeded in winning a good quantity because of quality constraints," he added.

Copyright Reuters, 2005


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