KARACHI, March 17: Pakistani rice exports remained under pressure in the past week because of high domestic prices and low international demand, and traders said on Tuesday business was likely to be dull in coming weeks.

Domestic prices were likely to stay high, as local rice demand had increased because of falling wheat stocks, they said.

No sharp fall in domestic prices was expected even though demand from exporters was easing, said Haji Majeed, an exporter in the southern port city of Karachi.

"Exports will not kick off until prices of IRRI-6 variety in the domestic market come down by at least 1,100 to 1,150 rupees per tonne," Majeed said.

"Foreign buyers are asking us to lower export prices by at least $15 to $20 per tonne, which we cannot do because of high domestic prices," he said.

Pakistani exporters were quoting $237/$239 per tonne for IRRI-6 variety compared with India’s $195 per tonne.

Traders said buyers in Pakistan’s traditional African markets were increasingly looking to cheaper Indian and Southeast Asian rice.

Exporters had shipped existing orders to traditional buyers but high prices had limited new demand, traders said.

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

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

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

The News International, Pakistan