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Fresh buying seen lifting rice prices

KARACHI: Fresh buying by international commodity houses was expected to slightly push up Pakistan rice prices but traders said on Thursday they were confused over Indonesian moves.

"International merchants have bought around 30,000 tonnes of IRRI-6 rice in recent days," said a Karachi-based rice exporter.

He said most of the shipments were destined for Africa and added more demand was pouring in.

But he said confusion persists over an Indonesian tender expected in January, with market talk saying it was likely to be postponed.

Indonesia said in December that it plans to buy 100,000 tonnes of rice from various origins through a tender in January, using funds granted by the Islamic Development Bank.

But in January, Indonesia imposed a 30 percent import tariff for rice, which traders said could lower its total imports for the year.

Trade sources said some Pakistani traders who recently visited Iran in a delegation led by officials from the state Trading Corp of Pakistan also struck a deal for supply of 15,000 tonnes IRRI-9 rice.

They said the order was on a trial basis to pave the way for larger shipments in the future.-Reuters