KARACHI (February 18 2004): Pakistani rice prices rose in the past week, mainly on slow supply, but they are expected to slip in coming days given a lack of export orders amid much cheaper Vietnamese and Thai grain, exporters said on Tuesday.

Exporters have quoted $290 CNF, compared to Vietnam's price of around $200, one exporter said.

Pakistan's rice year runs from April to November, but dealers said supplies had not yet peaked as farmers and distributors were releasing stocks slowly, hoping for higher prices.

Dealers said this tactic had hurt exports and they expected Pakistan to lose a tender for the sale of around 70,000 tonnes of IRRI-6 rice to Iraq because of high prices. They said the country's African market was also at risk.

"Pakistan is likely to lose much of its export market in Africa," said a leading exporter in the port city of Karachi.

Lack of demand from exporters would eventually help bring down domestic prices but not fast enough to protect the existing export market, he said.

"IRRI-6 exports are likely to fall by around 50 percent this year," the Karachi exporter said.

Dealers said Pakistan had exported 250,000 tonnes of IRRI-6 in fiscal 2003/04 (July-June), mainly to African countries, and around 700,000 tonnes last year.

Exporters were quoting FOB Karachi prices of around $213/215 a tonne for IRRI-6, versus the previous week's $202-$204, dealers said.

Iraq, Sri Lanka, Bangladesh and East African countries are traditional buyers of Pakistani IRRI-6. The fine-quality Basmati is especially popular in the Middle East and Europe.

Pakistan's new crop is expected to yield 4.3 to 4.6 million tonnes.

With domestic demand at 2.3 million, the government has said it hopes to see exports of 1.9 million tonnes in the fiscal year to June 30, against a previous year's 1.72 million.

Courtesy Business Recorder