Rice prices on declining trend

LAHORE - The price of rice has witnessed a sharp decline of Rs20 to Rs30 per kilogram in the open market as the commodity was being sold in the range of Rs50 to Rs 90 per kg in the country.

According to information collected by The Nation, the prices of all verities of rice have been on declining trend for the last few days due to the couple of reasons.

The super kernel basmati rice, stored for two years, which used to be sold at Rs 120 to 110 per kg is now being seen to have been sold at Rs90 during the last couple of days.

While, the same variety, which has been in store for one year, and was being sold at around Rs 100 per kg is available at Rs 80 per kg.

In the same way the 386 basmati rice is now being sold everywhere at retailer shops and on vendors carts at Rs 60 to 50.

However, it was observed that quality brands like Guard rice and Flora rice have seen no change in their rates and they are selling the commodity at Rs 135 to Rs 125 as usual as was done in the past. The sudden downslide in the price of the commodity had been attributed to the abundant rice supply in the wholesale market while some small hoarders have started the supply in the wake of arrival of new rice crop, dealers said.

They were of the view that declining trend was witnessed, as new produce of the crop reached the market coupled with hoarders' bringing their stocks to the market to avoid risk of losses. This has provided relief to the people during the holy month of Ramazan when the masses already were groaning due to inflation.

It is to be noted the prices of the aromatic and tasty commodity had gone up far above the reach of the common people because of the manipulation of the key stakeholders as the rulers were acting as silent spectators and engaged in their political agenda.

Interesting to note is that the exporters have been blaming the hoarders for this abrupt and unimaginable price of the rice.

According to official statistics, the total output of rice crop in FY2007-08 was 5.561 million tons against domestic consumption of 2.5 million tons. The annual export of rice stands around 3 million tons. It includes export of about one million tons of basmati rice against its production of 2.5 million tons. It is believed that annual domestic consumption of basmati rice is in the range of 1.2 to 1.3 million tons.

The per acre yield of rice production was 2211/kgs in current season against the target of 2186/kgs per acre yield. The basmati production showed increasing trend in Punjab as total output of crop has been recorded at 2.450 million tons. Similarly, the rice production has shown increase in Sindh during current season as total output of 1.817 million tons was reported.