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High prices hold back

Pakistan rice exports

KARACHI: Exports of Pakistan's superior quality Basmati rice have slowed and may fall sharply in the next two months because of its high domestic prices, a local dealer said on Thursday.

"There are no big deals as farmers are demanding higher prices of Basmati rice, which is in high demand in the Middle East," said dealer Haroon Kasam, a member of the Lahore-based Rice Exporters Association of Pakistan.

He said exporters were not making any profit after buying Basmati at high prices.

"Basmati rice export is almost at a standstill."

Private exporters continue to export IRRI-6 variety of rice mainly to the Middle East, an official of the state-run Rice Export Corporation of Pakistan said.

He could not give separate export figures for Basmati and IRRI-6 but the government's Federal Bureau of Statistics said rice exports were higher in March than in February.

Pakistan exported 167,939 tonnes of both qualities of rice worth $52.767 million in March, up from 123,707 tonnes worth $39.650 million in February and compared with 146,564 tonnes worth $40.965 million in the year-ago period, the official said.

Kasam said farmers were demanding a price of about 500 rupees ($14.39) per maund (37.32 kg) of Basmati while the viable price for export was 445 rupees. "We are not confirming orders for Basmati rice for shipment in the next two months."

Private dealers say they will export 1.2 million tonnes of rice -- about 800,000 tonnes of IRRI-6 and 400,000 tonnes of Basmati -- in fiscal 1995/96 (July-June).

The production target has been set at 4.0 million tonnes, slightly less than 1994/95 output of 4.02 million.

Exporters have quoted the following FOB rates:

Current

Previous Basmati

$465

$470 IRRI-6

$265

$270.-Reuter