KARACHI (January 14 2004): Pakistani rice prices edged higher this week on slow arrivals from the new crop, and dealers said on Tuesday supplies were expected to remain tight in the coming weeks.

"The market is very dull and we are waiting for supplies to accelerate," said Haji Majeed, an exporter in the southern port city of Karachi.

Majeed said low supplies had pushed prices to the point where Pakistani exporters could not compete with other origins offering IRRI varieties on the international market.

"We are quoting export prices of $184-$185 per tonne (for IRRI-6 variety of rice), while our competitors are quoting $172-$174 per tonne for the same quality," he added.

"We are even struggling in our traditional markets."

The main buyers of Pakistani rice are Iraq, Sri Lanka, Bangladesh and several East African countries.

Traders hope prices will fall in a week or so as arrivals from the new crop accelerate. Pakistan's rice year runs from April to November, but supplies have not yet peaked.

The new crop is expected to yield 4.3 to 4.6 million tonnes, with domestic demand at 2.3 million tonnes.

Pakistan expects to export 1.9 million tonnes in fiscal 2003/04 (July-June), against the previous year's 1.72 million.

Traders in Karachi reported a few small cargoes booked for East African countries, but said high domestic prices were hurting fresh orders.

"Exporters are only shipping their old commitments," said another trader.

Exporters were quoting FOB Karachi prices of about $184/$185 a tonne for IRRI-6 rice.

Dealers said 100-kg bags of IRRI-6 were quoted at 1,030/1,060 rupees in the local market, 10 rupees up from the previous week.

Courtesy Business Recorder