KARACHI (March 10 2004): Pakistani rice exports were thin during the past week as existing orders were shipped but high domestic prices limited new demand, traders said on Tuesday.

The high domestic prices were likely to keep exports slow in weeks ahead as demand increased because of falling wheat stocks.

Pakistan's wheat output was about 19.25 million tonnes in the 2002/03 crop year, against a target of 19.70 million.

Rice exporter Haji Majeed said Pakistani exporters could not match competitors' prices on the international market because of the surge in domestic prices.

"International merchants are currently buying rice from Vietnam and Thailand, which are offering export price of $200 and $218 per tonne," Majeed said.

Buyers in Pakistan's traditional African markets were increasingly looking to cheaper Southeast Asian rice. "India is also in the world market and it is offering a rock-bottom price," he said.

Pakistani exporters were quoting $239/$240 per tonne for IRRI-6 variety compared to India's $195 per tonne.

Traders said some exporters had shipped existing orders to traditional buyers but high prices had limited new demand.

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

Dealers said Pakistan had exported 350,000 tonnes of IRRI-6 in fiscal 2003/04 (July-June), mainly to Africa.

Exporters were quoting FOB Karachi prices of around $239/240 a tonne for IRRI-6, versus the previous week's $223-$225, dealers said.

Pakistan's new rice 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 the previous year's 1.72 million tonnes.

Courtesy Business Recorder