Rice, sugar prices start falling

KARACHI: Prices of various varieties of rice have declined by Rs2 to Rs10 per kg, while supply of sugar from the mills has resulted in some stability in its wholesale rates. A wholesale rice trader said that the price of a normal variety fell to Rs48 from Rs50 per kg, while Basmati (ponia) rice is now available at Rs45 as against Rs50 earlier.

He said the new 386 Punjab variety now sells at Rs35 as compared to Rs40 per kg, Kernal Basmati price fell to Rs75 from Rs80 per kg, while Kernal special Basmati rate has declined to Rs90 from Rs100 per kg. A retailer said that Kernal Basmati super rate is now tagged at Rs120 as compared to Rs125 per kg. Irri-6 price

fell to Rs24 from Rs26 per kg while Basmati sela rate plunged to Rs95 from Rs115 per kg. Shopkeepers said that the prices had declined owing to some declining trend in rice exports from July onwards. As a result ample supplies of various varieties of rice had arrived in the local markets. Figures of Federal Bureau of Statistics (FBS) gave a dismal picture of rice export. Pakistan s total rice exports (basmati and others) fell by 33.4 per cent in value during July-Oct 2009, fetching only $537 million (809,872 tons) as compared to $806 million (787,222 tons) in the same period of 2008. Basmati exports fell by 51 per cent in value and 33 per cent in quantity to $240 million (228,991 tons) in July-Oct, 2009 as compared to $488 million (342,350 tons) in the same period of 2008. Exports of other varieties stood at $296 million (580,881 tons) in July-Oct 2009, as compared to $318 million (444,872 tons) in the corresponding period of 2008. However, vice-chairman Rice Exporters Association of Pakistan (Reap), Rafiq Suleman said exports had been going up. He claimed that during July-Nov 2009, non-basmati exports went up by 32 per cent to 993,617 tons as compared to 751,770 tons in the same period of 2008. Basmati exports, however, went down slightly by six per cent to 372,686 tons during July-Nov, 2009 as compared to 398,327 tons in the same period of last year. Rafiq added that as exports are picking up, total exports of rice in the current financial year is likely to achieve target of $2.2 billion while in the last fiscal year, exports fetched $2.04 billion. Sugar The wholesale sugar price is now quoted at Rs51-52 per kg as compared to Rs58 per kg a month back but the retailers are not ready to pass on this impact to the consumers. Majority of the retailers are charging Rs60 per kg in many areas, while some are demanding even more than Rs60 per kg. Wholesalers said if the supply of sugar from the sugar mills improves further in coming days, the rates would further fall.