| Daily Times - Site Edition | Tuesday, June 17, 2008 |
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Rice prices decline in June
By Ijaz Kakakhel
ISLAMABAD: The prices of different varieties of rice observed downward trend during June after reaching to a record level high in May 2008, senior officials in the ministry of Food, Agriculture and Livestock (MINFAL) told Daily Times Monday.
The price of Basmati rice in the current month is Rs 88/kg, which was Rs100/kg in the May 2008 showing a decline of 12 percent. Similarly the price of Irri observed Rs 42/kg in the current month while last month it was Rs 50/kg showing a 16 percent decline.
Main reason of the decline was stated to the announcement of Minimum Export Price (MEP) made by the government on April 30 this year.
The government had announced MEP for different varieties of rice in consultation with the representatives of the Rice Exporters Association of Pakistan (REAP) after studying local and international demand for the commodity.
The government announced the MEP price for different varieties. It was $1500 per tonne for Super Basmati, $1300 per tonne for Basmati, $750 per tonne for Irri-6 and $1,000 per tonne for Irri-9 (long grain).
The MEP restrictions would not only ensure the availability of the commodity in the local market but super basmati would also be available at Rs 75-80 per kilo, Sella super basmati at Rs 85 and broken at Rs 45, officials maintained.
The ministry of commerce was against the move as it would hurt the trade of the commodity and would have a negative impact on the exports, an official of the Commerce Ministry who declined to be named commented on the MEP restriction.
After wheat flour crisis, consumers were confronting with a fresh spike of rice prices as the retail price of the superior quality rice had hit the record benchmark of 140/kg, which was far above the export price and Rs 115-120 kg price of rest of the popular brands. Before the fresh spike in rice prices the rice of superior brand was being sold at Rs 85-90 per kg at retail, but the new price of rice had gone up to Rs 140/kg.
