Pakistani state firm buys rice for export

Pakistani state firm buys rice for export

KARACHI (Reuter): Pakistan's state Rice Export Corp (RECP) has started buying rice for possible export to Indonesia, Iraq and elsewhere, dealers said.

One dealer said the RECP was paying about 270 rupees (US$7.94) per 40 kg for the IRRI-6 variety, about 60 rupees more than the official support price of 211 rupees. Farmers had previously refused to sell rice to the RECP at the government-set level.

An RECP official confirmed that procurement had begun, but would not say what price the corporation was paying. He said the RECP was in the market for 800,000 tons of IRRI-6 in 1996.

The official, who asked not to be named, said the RECP had entered the market after getting a green light from the Commerce Ministry to pay farmers more than the support price.

The dealer said domestic rice prices had soared in line with international prices, boosted mainly by demand from Indonesia and Iraq.

He said Indonesia might buy up to 500,000 tons of rice and Iraq between 200,000 and 300,000 tons.

Iraq has recently made enquiries for possible direct shipments of IRRI-6 grade rice from Pakistan, a senior local rice trader said on Tuesday.

Pakistan's rice production in 1995/96 (July-June) is likely to rise 16.6 percent to 4.02 million tons from 3.45 million in 1994/95, an official at the Agriculture Ministry said.

The production target for Basmati rice had been set at 1.32 million tons and for IRRI-6 at 2.70 million tons.

Private Pakistani dealers have been selling rice to Indonesia at prices close to $300 a ton C&F, dealers said.