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Karachi Grain Market Watch [Rice update]
January 27 2010
IRRI 6 is continually rising due to demand for export, particularly Exporters who finalized deals for the supply of 250,000 mt of
IRRI 6 rice to Philippines. Irri 6 is traded at 28.75 - 29 Rs / kg in Jodia Bazar while on NCEL, it was traded at Rs. 2875 / 100 kg
on January 26 2010.
According to our estimates around 600,000 tons of IRRI 6 has been exported while stocks of 300,000 tons are existing in
Karachi which are already sold but waiting only for the shipments, hence only about 600,000 - 800,000 tons of IRRI 6 is
available for export during next 6 to 7 months. The supply position is tight while the expectations are strong that Indian
Government shall buy the rice to meet the domestic shortfall.
January 27 2010
IRRI 6 is continually rising due to demand for export, particularly Exporters who finalized deals for the supply of 250,000 mt of
IRRI 6 rice to Philippines. Irri 6 is traded at 28.75 - 29 Rs / kg in Jodia Bazar while on NCEL, it was traded at Rs. 2875 / 100 kg
on January 26 2010.
According to our estimates around 600,000 tons of IRRI 6 has been exported while stocks of 300,000 tons are existing in
Karachi which are already sold but waiting only for the shipments, hence only about 600,000 - 800,000 tons of IRRI 6 is
available for export during next 6 to 7 months. The supply position is tight while the expectations are strong that Indian
Government shall buy the rice to meet the domestic shortfall.
The Rice Exporters Association of Pakistan has warned if
government bodies get involved in rice export, the private trade
would come to a halt.
Foreign buyers are waiting for the Pakistani government to issue
tender and they expect import at low prices, Rafique Suleman,
Vice Chairman REAP told The News.
He said the government bodies’ intervention in rice export would
be a great loss to the private sector that has invested billions of
rupees in the trade.
The government after allowing export of rice to the Trading
Corporation of Pakistan (TCP) in November last year, now has
also allowed Pakistan Agriculture Storage and Supplies
Corporation (PASSCO) to export rice to any country of the world. It
was decided in a meeting of the Economic Co-ordination
Committee (ECC) held on January 12.
The Ministry of Food and Agriculture (MinFA) had forwarded a
summary for the approval of the ECC on Jan 6 to allow PASSCO
the export of rice to the Middle East, Iran, Europe or any other
market on government-to-government basis. MinFA got approval
to export Super Basmati rice (five per cent broken) at $900 per
tonne through qualified local and foreign agents.
The Ministry of Industries & Production, Planning & Development
Division of Planning Commission, Finance Division and Ministry of
Commerce supported the summary.
According to sources, the TCP holds 25,000 tonnes of basmati rice
while PASSCO holds 90,000 tonnes of the same quality.
PASSCO and TCP on government directives had procured one
million tonnes of paddy (0.5 million tonnes from Punjab and
aggregate 0.5 million tonnes from Sindh and Balochistan) to
support paddy growers. PASSCO procured 435,832 tonnes milled
rice from rice millers on set intervention prices of Super Basmati
paddy at Rs1,500 per 40kg which was converted into Rs3,000 per
40kg (Rs75 per kg) after being milled to Super Basmati rice. IRRI-
6 was bought at Rs700 per 40kg which was converted into Rs1,400
per 40kg (Rs35 per kg) for milled IRRI-6 rice.
TCP bought 25,000 tonnes Super Basmati rice through tenders at
Rs87 and Rs75.90 per kg and 1,500 tonnes IRRI-6 rice at Rs32.
90 per kg.
TCP is trying to export its held stocks since last year and had
issued its first tender on October 09, 2009 but failed to receive
any bid till its tender closed on November 24, 2009. Tender was re-
issued on December 18, 2009 to export 25,000 tonnes of Super
Basmati rice which would be opened on Jan 21 for acceptance of
bids.
In order to record their protest, REAP delegation led by Vice
Chairman Rafique Suleman met with Dr Ishratul Ibad, Governor of
Sindh at Governor House on Wednesday.
Rafique Suleman informed the governor that during July to
December 2009, around 20 million tonnes of rice was exported to
various countries valuing around US$1 billion.
government bodies get involved in rice export, the private trade
would come to a halt.
Foreign buyers are waiting for the Pakistani government to issue
tender and they expect import at low prices, Rafique Suleman,
Vice Chairman REAP told The News.
He said the government bodies’ intervention in rice export would
be a great loss to the private sector that has invested billions of
rupees in the trade.
The government after allowing export of rice to the Trading
Corporation of Pakistan (TCP) in November last year, now has
also allowed Pakistan Agriculture Storage and Supplies
Corporation (PASSCO) to export rice to any country of the world. It
was decided in a meeting of the Economic Co-ordination
Committee (ECC) held on January 12.
The Ministry of Food and Agriculture (MinFA) had forwarded a
summary for the approval of the ECC on Jan 6 to allow PASSCO
the export of rice to the Middle East, Iran, Europe or any other
market on government-to-government basis. MinFA got approval
to export Super Basmati rice (five per cent broken) at $900 per
tonne through qualified local and foreign agents.
The Ministry of Industries & Production, Planning & Development
Division of Planning Commission, Finance Division and Ministry of
Commerce supported the summary.
According to sources, the TCP holds 25,000 tonnes of basmati rice
while PASSCO holds 90,000 tonnes of the same quality.
PASSCO and TCP on government directives had procured one
million tonnes of paddy (0.5 million tonnes from Punjab and
aggregate 0.5 million tonnes from Sindh and Balochistan) to
support paddy growers. PASSCO procured 435,832 tonnes milled
rice from rice millers on set intervention prices of Super Basmati
paddy at Rs1,500 per 40kg which was converted into Rs3,000 per
40kg (Rs75 per kg) after being milled to Super Basmati rice. IRRI-
6 was bought at Rs700 per 40kg which was converted into Rs1,400
per 40kg (Rs35 per kg) for milled IRRI-6 rice.
TCP bought 25,000 tonnes Super Basmati rice through tenders at
Rs87 and Rs75.90 per kg and 1,500 tonnes IRRI-6 rice at Rs32.
90 per kg.
TCP is trying to export its held stocks since last year and had
issued its first tender on October 09, 2009 but failed to receive
any bid till its tender closed on November 24, 2009. Tender was re-
issued on December 18, 2009 to export 25,000 tonnes of Super
Basmati rice which would be opened on Jan 21 for acceptance of
bids.
In order to record their protest, REAP delegation led by Vice
Chairman Rafique Suleman met with Dr Ishratul Ibad, Governor of
Sindh at Governor House on Wednesday.
Rafique Suleman informed the governor that during July to
December 2009, around 20 million tonnes of rice was exported to
various countries valuing around US$1 billion.