Rice News Today

Prices of essential kitchen items witness mixed trend

ISLAMABAD: The prices of essential kitchen items have witnessed a mixed trend during this week past against the previous week, revealed a survey carried out by Business Recorder, here on Saturday.

A reduction in the prices of chicken and vegetables was observed, while spices, packed milk, sugar, Liquefied Petroleum Gas (LPG), rice, pulses, cooked food items, detergents, ghee, cooking and bathing soap prices remained stable. Wheat flour and pulses prices witnessed an increase.

Chicken price went down from Rs 16,100 per 40 kg in the wholesale market to Rs 15,500, which in retail, is being sold at Rs 410 per kg against Rs 440 per kg, while chicken meat is being sold at Rs 600 per kg against Rs 650 per kg. Eggs prices went up from Rs 6,000 per carton of 30 dozens to Rs 6,500 per dozen, while in retail, eggs are being sold at Rs 250 per dozen against Rs 245 per dozen.

Wheat flour price witnessed an increase as best quality wheat flour price went up from Rs 1,930 per 15 kg bag to Rs 1,960, which in retail is being sold at Rs 2,000 per 15 kg bag against Rs 1,960. Normal quality wheat flour bag is being sold at Rs 1,940 per 15 kg bag against Rs 1,880 in the wholesale market, which in retail is being sold at Rs 1,980 against Rs 1,900 per bag.

Tea price remained stable as Lipton Yellow Label tea is available at Rs 1,750 per 900 gram pack and Islamabad tea price remained unchanged at Rs 1,650 per 900 gram pack, powder chilli price remained stable at Rs 720 per kg, and turmeric powder price remained stable at Rs 360 per kg.

Sugar price went up from Rs 4,800 per 50 kg bag to Rs 4,805 per bag, which in retail is being sold at Rs 105-110 per kg. LPG is available at Rs 390 per kg which is Rs 105 higher than the Ogra’s fixed price of Rs 275 per kg.

The survey observed no changes in the transportation costs which witnessed a significant increase following an increase in petrol and diesel prices. The increase in transportation cost has also played an important part in increasing the prices of all the essential kitchen items.

No changes were observed in spices prices as normal size of a spice pack is available at Rs 100 per pack, prepared tea cup is available at Rs 60 per cup, a plate of cooked daal at a normal hotel is available at Rs 200 per plate, cooked vegetable at Rs 200 per plate, and roti price remained stable at Rs 20 per roti.

Rice prices remained stable as best quality basmati rice is available at Rs 12,800 per 40 kg bag, while the retailers are selling at Rs 350 per kg, normal quality Basmati at Rs 10,500 per 40 kg bag, which in retail is being sold at Rs 300 per kg, and broken basmati rice price at Rs 7,000 per bag, which in retail is being sold at Rs 180 per kg.

B-Grade ghee/cooking oil price remained stable as it is available at Rs 6,800 per carton of 16 packs, which in retail is varying from Rs 450 per kg to Rs 500 per pack of 900 grams. While best quality cooking oil/ghee brands such as Dalda prices are stable at Rs 3,220.

Pulses prices witnessed an increase as best quality maash is available at Rs 460 per kg against Rs 440 per kg, gram pulse is being sold at Rs 250 per kg against Rs 240 per kg, whole gram pulse is being sold at Rs 400 per kg against Rs 360 per kg, bean lentil at Rs 400 per kg against Rs 380 per kg, moong at Rs 320 per kg against Rs 240 per kg, and masoor at Rs 280 per kg against Rs 260 per kg.

Packed milk prices remained unchanged as small Milk Pak and other brands are available at Rs 70 per pack, while one litre pack is available at Rs 240. Fresh milk price remained stable at Rs 190 per kg and yoghurt prices at Rs 200 per kg. Detergents prices witnessed no changes.

Rice might pricier as erratic rains hold back sowing across states

Rice may get even more expensive in the times to come as low rainfall has impacted paddy sowing in key rice producing Indian states like Uttar Pradesh, Bihar and West Bengal.

According to a recent report by Yes Bank, paddy sowing in India is now down by 13%. This could have global implications too as India is the second largest exporter of rice in the world. Overall, only 866 lakh hectares of field has been sown this kharif season, representing a dip of 4 lakh hectares from last year.

“Even as production trends in India and the globe need to be monitored, we do not think it is of a huge concern immediately and the government need not have to immediately consider clamping down on the exports of rice as they had done for wheat,” said Yes Bank.

Kharif Crops	Area sown as of August 5, 2021	Area sown as of August 5, 2022
Rice	267 lakh hectares	232 lakh hectares
Pulses	119 lakh hectares	116 lakh hectares
Coarse Cereals	154 lakh hectares	160 lakh hectares
Oilseeds	174 lakh hectares	175 lakh hectares
Sugarcane	54 lakh hectares	55 lakh hectares
Jute & Mesta	7 lakh hectares	7 lakh hectares
Cotton	114 lakh hectares	121 lakh hectares
Grand Total	890 lakh hectares	866 lakh hectares

Source: PIB, CEIC, Yes Bank Economics Research

There has been a global shortage of rice right now too due to adverse weather conditions across top rice suppliers in Asia. If the production of rice is impacted in India, it would lead to a limited export capacity for the country especially amid the supply chain disruptions caused by Russia-Ukraine war and climate change.

To draw a parallel, India had to stop all exports of the wheat staple this May to address shortages in the country. The ban reduced the price of wheat in India by at least 5% in the first 10 days, compared to the record high it reached at the start of May before the ban.

However, the ban did leave large importers of wheat like Bangladesh and UAE in a lurch.

Bangladesh decided to learn from the past and made some policy changes in the month of June to prevent this situation from happening again with another staple, rice. The country reduced its import duty and tariff to 25%, from the previous 62.5%, in June 2022 when India witnessed its first dip in paddy sowing. It also allowed the import of non-basmati rice till October 31.

The revised import policy had prompted more Indian traders to export rice out of India to clock in more income, which led to a 10% jump in rice prices in the first five days of the announcement.

According to media reports, rice prices in India have increased 30% since June. Now it is too

early to say whether rice can see the same trajectory as wheat, but their situation needs to be closely monitored.

“At the current juncture, procurements are proceeding smoothly while the FCI stocks are largely comfortable when compared to the buffer norms. Though not of an immediate concern, the evolving situation needs to be watched carefully,” Yes Bank said in its recent report.

It is important to note that 10 countries account for nearly 85% of the world’s rice production, with China and India being the top two producers. China has already witnessed a decline in rice yield due to pest issues, whereas other rice producing countries like Thailand and Vietnam have reported a decline in crop yields too along with increased cost of production.

“The shortfall in kharif sowing of paddy, however, needs to be watched closely, although buffer stocks are quite large. Household inflation expectations have eased, but they still remain elevated,” Shaktikanta Das, governor of the Reserve Bank of India, said earlier this month in his credit policy statement.

Rice prices may continue to rise in Arakan State, businesspeople warn

Rice merchants and businesspeople have said the prices of rice in Arakan State may continue to rise.

The price of a sack of Paw Hsan Mwe rice averaged between K46,000 and K50,000 in Arakan State before prices began to rise. The price has increased by around K10,000, from K50,000 in early August to K60,000, according to rice dealers.

Previously, one bag of low-grade rice was about K31,000, but now the price has increased to about K34,000, according to rice merchants.

U Zaw Than Aung, a rice seller, said that since farmers in Arakan State only grow monsoon paddy on a commercial scale and there is still a shortage of paddy in the market, the price of rice may continue to rise.

“Arakanese farmers grow only monsoon paddy on a commercial scale. We still need time to harvest the monsoon paddy, and the consumption of rice is on the rise, so the price of rice will continue to rise again,” he added.

U Khin Maung Gyi, a local businessman, said the price of rice in the market has increased by about 10 percent, and due to the scarcity of paddy in the market, the rice price may rise even more.

“The paddy stocks in the hands of merchants are not as much as they should be and there is still time to harvest paddy. As the price of rice rises, the rice dealers will raise the price, so the price of rice will continue to rise,” he said.

U Khin Maung Gyi continued that the price of rice may be spurred to even greater heights due to skyrocketing fertiliser prices this year, numerous people abandoning farming, and damage to rice fields related to climate change.

“At the moment, due to the drought, the rice crops are unable to survive, and it is known that about 50 percent of the planted acres have been destroyed. And because farmers can’t use enough fertiliser, next year’s rice yield will certainly drop. If the yield of rice goes down, the price of rice may rise again,” he added.

Ko Nyi Khaing Thwee, a young Arakanese composer, pointed out that if the price of rice, the main staple food for Myanmar, increases due to the Covid-19 pandemic and the country’s ongoing political crisis, the grassroots could face many difficulties.

“At this time, all people are facing various difficulties and are struggling to make ends meet. How will the grassroots cope with their livelihood hardships if the rice price continues to rise?” he said. “The grassroots are the first to suffer from political and economic instability. If only the grassroots face livelihood hardships, everything can explode. So, those concerned will need to deal with this issue carefully.”

Rice dealers and residents have urged officials and businesspeople to take effective measures to help farmers solve the rice price increase caused by post-coup political turmoil.

Rice Price Drops, Bucking Trend for Grain

Rice is one of the few major agricultural commodities whose price has dropped this year, helping retard inflation in Asia.

At mid-June, rice prices were about 17% lower than last year’s. By contrast, wheat is 37% higher and corn 27% higher, according to the Wall Street Journal.

The drop in rice prices is mostly attributable to bumper crops in Asia. In addition, trading in rice is relatively unaffected by the war in Ukraine, which has roiled wheat and other commodity markets.

The rice situation has put Asia in a good position with regard to inflation. Its inflation rate was 4%, less than half of the rate in the U.S. and much of the rest of the world.

There are, however, some problems on the horizon. Rice farmers have to cope with lower prices for their crops, while dealing with rising costs for fertilizer and fuel. Some of them are switching to higher-value crops like corn and soybeans, the Journal reports.

In Rohtak, basmati fetches record price

The price of 1121 variety of basmati rice has witnessed a considerable jump in the open market in Haryana, fetching up to Rs 1,061 per quintal more compared to last time. On Monday, a rice grower from Sheria village in Jhajjar district sold his produce for Rs 4,561 per quintal at the grain market here even as private traders had bought it for maximum Rs 3,500 last year. “We sow 1121 variety of basmati rice over 20 acres every year and store about 150 quintal for subsequent sale. Even we hadn’t expected this much gain,” said an ecstatic Naveen, the rice grower. Bhartiya Vyapar Mandal vice-president Harsh Girdhar cited several reasons for the high rates, including decrease in 1121 basmati sowing area, new markets in Iraq and Iran and global grain crisis due to the Russia-Ukraine conflict. He said rice growers had been storing some portion of their produce to sell it during off-season when it fetched higher returns. “The area under PR variety of rice, procured by the government on the MSP, rising considerably last year was another factor behind the hike in the price.”

Food grains heading to rice mills in the midst of uncertainty

Farmers selling below MSP of ₹1,960 a quintal

In the face of uncertainty over procurement of paddy cultivated in the ongoing rabi by the government, farmers have already started moving the harvested crop to private rice mills and selling it well below the minimum support price of ₹1,960 a quintal for fine variety that was more easily marketable. The movement of stocks was only in the case of early crop, which was sown immediately after the season began, while the harvest of late sowings will take another week, sources said. They added that the millers came forward to purchase the fine variety at over ₹2,000 a quintal initially but the rates dropped to less than ₹1,900 in the last couple of days. At some places, it was even ₹1,750 a quintal.

Drop in prices

The drop in prices was attributed to stepped up arrivals at mills which resulted in farmers waiting for their turn for two or three days to dispose of the stocks. The initial arrival of crops that were harvested a fortnight ago which were in smaller quantities fetched good prices for farmers. On the other hand, the Food Corporation of India has refused to accept custom milled rice of 2020-21 rabi season after March 31 though the State government wanted the deadline to be extended by two months.

Union Minister of State for Tourism G. Kishan Reddy said that the State government was yet to meet its target of 2020-21 rabi despite several reminders. The Centre will keep its commitment to the State for 2020-21 rabi but not the corresponding season which has triggered the stand-off with the State.

China sells rice at auction

BEIJING: China sold 9,727 tonnes of rice, or 0.53% of the total offer, at an auction of its state reserves on March 22, the National Grain Trade Center said in a statement on Monday. The average selling price of the rice was 2,644 yuan ($415.34) per tonne, according to the trade centre.

With maize prices soaring, export demand zooms for Indian broken rice as feed

Buyers in Vietnam, China and Indonesia switch to the foodgrain, but its rates rising sharply

With maize (corn) prices soaring on demand from West, South and South-East Asia, buyers abroad are switching over to 100 per cent broken rice for animal feed in countries such as Vietnam, Indonesia and China. “There is a huge demand for maize from Bangladesh, Vietnam, Indonesia besides the Gulf. But prices have surged and availability is low since the new crop will arrive only after next month,” said Bimal Bengani, Managing Director of Kolkata-based Bengani Export Pvt Ltd. “Shipments of maize have slowed down after prices soared due to the Russia-Ukraine conflict. Instead, buyers from Vietnam and Indonesia are now seeking broken rice,” said M Madan Prakash, President, Agri Commodities Exporters Association (ACEA).

Only small orders taken

“Exporters are accepting only small immediate orders that can be shipped in containers. From Kandla in Gujarat, maize is now going to Oman and other Gulf countries, as they are keen on maintaining the feed quality,” said Mukesh Singh, Co-founder of Mumbai-based MuBala Agro Commodities Ltd. A major reason for domestic maize prices increasing is that the kharif crop has almost got exhausted. Singh said maize is currently quoted at ₹2,200-500 a quintal against the minimum support price of ₹1,870. Demand for maize has increased as supplies from Ukraine, which contributes 16 per cent of global exports, have been cut off with shipments from the Black Sea coming to a total halt after Russian troops entered eastern Ukraine on February 24.

Lukewarm demand

“Prices of maize delivered in Chennai for exports are ₹2,350,” said ACEA’s Prakash. In Gujarat, agricultural produce marketing committee yards such as Dahod, the modal, or rate at which most trades took place, was ₹2,300 on Monday. According to the International Grains Council (IGC), Argentina quoted $329 a tonne last weekend, while Brazil offered maize at $364 and the US at $363 (f.o.b) free on board. Currently, benchmark corn futures on the Chicago Board of Trade are ruling at $7.44 a bushel ($292.83 a tonne). “We shipped 250 tonnes of maize to Hong Kong some time back, but after that demand has been lukewarm,” Prakash said. “There are still some varieties of maize being shipped to Vietnam and Indonesia. A lot of maize is going to Bangladesh by road,” said VR Sagar, Director, Bulk Logix. Bengani and Singh concurred with his views. “Some exporters are expecting prices to increase to $420-430 and are holding off,” Sagar said.

Exports feasibility

Maize is one of the agricultural products whose exports have been good this fiscal, increasing by over 30 per cent in the first 10 months. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), the export of other cereals, in which maize plays a major part, was 3.16 million tonnes (mt) valued at $1.74 billion during April-January this fiscal against 2.37 mt valued at $527 million in the year-ago period. MuBala’s Singh said maize exports were feasible as long as prices were around ₹1,700-800 a quintal in the domestic market. Until December, Bangladesh was the top buyer purchasing 1.25 mt, while Vietnam purchased 0.95 mt. “In view of the high prices, there is good demand for 100 per cent broken non-sortex rice that is commanding a higher price,” said Prakash. The non-sortex rice will have yellow and black coloured grains.

Chinese purchase

“Even broken rice prices are now quoted near maize prices as there is a shortage,” said Sagar. Broken rice are commanding ₹2,100 a quintal and more. An exporter from Bengaluru said 100 per cent broken rice prices were at par with 25 per cent broken white rice. As per IGC data, 25 per cent broken rice price last weekend were $349 a tonne. According to APEDA data, China, which began importing Indian rice in the last fiscal after over three decades, bought 1.1 mt of rice during the April-December period of the current fiscal and Vietnam 0.6 mt. In October, the US Department of Agriculture said broken rice accounted for 97 per cent of India’s rice exports to China during January-August last year. “Broken rice has always been going to China and Vietnam over the last couple of years. This year, there is a shortage now,” Sagar said. “Exports of broken rice could also be a problem in view of the surge in price. We could manage when prices ruled at around ₹1,600-700,” he said, adding that the issue now was the grain’s availability. China began buying broken rice from India to use it as feed after corn prices surged last fiscal. Also, Beijing is required to build feed inventories as part of its plans to increase the production of pigs. Singh said it takes time to accumulate broken rice quantity for exports as they are done in bulk. A Delhi-based trade consultant said most of the broken rice was heading from the east coast ports such as Kakinada and Kolkata to Vietnam and Indonesia. “Maize prices will begin to decline once the arrival of the rabi crop beings,” Bengani said. “Rice prices will begin tapering off once Rabi arrivals begin. This will happen around mid-May,” said Sagar.

Freight advantage

Delhi-based exporter Rajesh Paharia Jain said India has freight advantage to export to China, the Netherlands and South Korea, which had been buying from Ukraine before the conflict intensified. “It is a win-win situation for India after the Russian-Ukraine crisis. As India has a freight advantage of $70-80 a tonne and Chinese demand is up, it would be favourable to India. India maize export share to China might improve,” he said, adding that the coarse cereal exports might increase by 5-7 per cent in 2022-23.

Rice exports: interesting times ahead?

It’s the season of new records. Pakistan’s rice exports breached 3 million tons during the 8-month period ending February-22, a first in at least 12 years. If exporters are able to maintain the monthly run rate of 0.4 million tons between Mar-June, final export tally for FY22 may touch 4.5 million tons. That would be 10 percent greater than Pakistan’s highest-ever export volume, last achieved in FY16.

Unsurprisingly, higher export earnings have accompanied the quantum jump in volume. However, while export volume rose by 22 percent, dollar earnings only rose 15 percent. As BR Research has previously highlighted, rice is the only major cereal which has remained immune to the charms of ongoing global commodity price boom, leaving Pakistani exporters at a disadvantage so far.

According to the data released by PBS, rice exporters fetched 5.5 percent lower prices on average during Jul ’21 - Feb ’22, compared to the same period last year. Unit price for exports of both rice categories fell during 8MFY22, with average export price for basmati declining 11 percent, while coarse prices fell 6 percent versus the previous year. Nevertheless, full year earnings against rice exports may yet clock in above $2.1 billion, nearly three percent higher than last year. Interestingly, bulk of the jump in export value has emanated from basmati category, which added $80 million in incremental earnings over the previous year. Basmati export volume rose by 37 percent during the 8M period, but still remained significantly lower than the year earlier (FY20). Full year basmati exports may reach 0.7 million tons, only third-highest during last decade.

Market watchers will appreciate that growth in basmati exports remains the key to unlocking country’s the cereal’s export potential. Historically, basmati export has fetched 2x the unit prices in international market than coarse varieties. Pakistan’s basmati export potential is estimated at 1 million tons per annum – one-fourth of total world basmati market – yet has remained conspicuously shy of that goal due to uncompetitive pricing relative to Indian exporters until recent past. However, another risk to basmati export thesis now looms large in near-term. According to preliminary data, Pakistan’s basmati production has fallen short by 10 percent during kharif FY22, clocking in at 3.7 million tons against 4.1 million tons the previous year. This is despite news of national rice output kissing a fresh record of 9 million tons during the ongoing year, primarily driven by record yields in coarse varieties. Wherein lays the rub. Local consumers remain fond of basmati rice – which is also one-third more expensive (on average). It bears emphasis that up to 80 percent of Pakistani basmati feeds into local consumption, whereas nearly 75 - 80 percent of coarse varieties (both IRRI and hybrid) – are exported. This implies that the decline in basmati output during the current year may inadvertently impact the exportable surplus.

Ordinarily, this would not make news, except that it comes at a time when the country is all set to witness a significant wheat shortfall. Naturally, basmati is Pakistani’s second favorite cereal after wheat flour, and a basmati surplus could have very-well come in handy to fill Pakistani stomachs in case wheat prices ran amok. Although rice and wheat prices have historically not shown any correlation in at least the domestic market, 2022-23 marketing year shall offer interesting insights into the extent of substitution effect between the two grains. Especially, if basmati prices come under pressure locally, while maintaining their prevailing calm in the international market. Whether consumers shall switch to the cheaper coarse rice also remains to be seen, especially given the strong distaste local palate has for IRRI/hybrid rice.

Meanwhile, will traders reduce basmati export volume to cater to greater domestic demand or not will be another curious event. Or, will they aggressively chase exports, raising prices back home? Interesting times ahead.

Sri Lanka Facing Worst Economic Crisis; Price of Rice Goes up to Rs 500 per kg

Srilanka is facing an economic crisis that has led to food scarcity and inflation in prices in the country.

People Waiting In Queue To Buy Groceries

In the middle of its worst economic crisis in decades, Sri Lanka has been hit by a critical shortage of basic necessities such as medicine, food fuel, cooking gas, etc. People are queuing for hours for petrol and diesel. Citizens are facing daily power outages caused by the lack of fuel to power the powerplants, and the warm season has depleted hydroelectric power capacity. The Central Bank has permitted the national currency to move more freely earlier in the month which has caused inflation in prices. Food and beverage prices in Sri Lanka have skyrocketed due to inflation. People are waiting in queue for hours to buy groceries. The price of rice in Sri Lanka has risen to 500 Sri Lankan rupees per kg. In Sri Lanka, 400 grams of milk powder costs Rs 790. In the last three days, the cost of milk powder has risen by Rs 250.

Food Scarcity Is Driving People To Flee

The financial downturn in Sri Lanka is causing a big impact on the coastline areas of southern India, particularly Tamil Nadu as Tamil refugees are fleeing from the northern part of the island country. On Tuesday, two groups of 16 Sri Lankan Tamilian citizens from the Manna and Jaffna parts arrived in Tamil Nadu. As per the reports, Tamil Nadu intelligence officers have learned that roughly 2,000 refugees are expected to arrive in the upcoming days.

What Has Led To The Crisis?

The economy of Sri Lanka is highly dependent on tourism activities and trade. The pandemic has been utterly devastating, with the government assessing a $14 billion loss over the course of the past two years. According to the central bank, the economy will contract by 1.5 percent between July and September 2021. Sri Lanka, which has been depleting reserves and massive debts to pay, is in desperate need of foreign currency, with a $7 billion debt obligation for 2022. Sri Lanka's foreign currency reserves are shrinking, in part due to the non-building projects funded by Chinese loans.

Utility stores jack up rice, basin prices ahead of Ramazan

ISLAMABAD – Prices of basin and rice, the two commodities most used in Ramazan, have been increased massively at the utility stores as the holy month of fast is set to begin in early April. The price of basin has been jacked up by Rs30 to Rs190 per kilogram, according to a notification issued by the Utility Stores Corporation. The price of rice has been increased by Rs25 per kg. The new price will come into effect immediately, said the notification.

Prices rise across major hubs on higher demand for rice

Prices of rice exported from top Asian hubs jumped this week on solid demand, while Vietnamese traders also flagged high shipping costs due to the Ukraine crisis. Thailand's 5% broken rice prices rose to $415-$428 per tonne, on average a peak since late June, from $400-$403 a week ago. As corn and wheat prices rise, animal feed makers were looking to use more broken rice, pushing up prices across the board, Bangkok-based traders said. Another trader said he recently received interest from buyers in Europe, the United States, Iraq and Iran for different grades of Thai white rice. Demand from Hong Kong has also increased, the trader said, with concerns over plans for a city-wide lockdown sparking panic buying by residents. Thailand exported 459,752 tonnes of rice worth $234 million in January, up 8.92% from the same period last year, the commerce ministry said. Rates for top exporter India’s 5% broken parboiled variety rose to $371-$378 per tonne from last week's $370-$376, also a peak since mid-June. "Consumers are trying to build stockpile due to the rally in wheat and corn prices. Demand is improving for rice," said an exporter based at Kakinada in southern state of Andhra Pradesh. Vietnam's 5% broken rice prices rose to their highest since December at $410-$415 per tonne on Thursday, versus $400 last week, amid higher demand, traders said, with the Ukraine-Russia conflict prompting buyers to place more orders from elsewhere in Asia. Another trader said shipping costs had surged since the Ukraine-Russia conflict began, with international freight costs rising 50% and domestic freight costs climbing 70%-80%. "We're concerned costs will keep rising if the conflict continues," the trader said. Traders said farmers in the Mekong Delta had harvested 20%-25% of the winter-spring crop. Domestic rice prices in Bangladesh remain high despite good crops and reserves, traders said, adding that the global market was seeing a hike due the Ukraine-Russia conflict. "It is very much unlikely that local prices will come down soon," a trader said.

Biryani plate becomes dearer as rice prices go up

The mouth-watering biryani is being packed in a plastic tub at an outlet. (Right) A rice shop in Jodia Bazaar.—Fahim Siddiqi / White Star

KARACHI: The retail prices of various varieties of rice have been increased by up to Rs40 per kilo almost a month before Ramazan. Traders claim that the prices have been raised due to rise in exports and high transportation cost. The retail price of medium quality basmati is now Rs200 as compared to Rs160 per kg while normal basmati is selling at Rs150-160 instead of Rs120-130 per kg. Premium basmati is now priced at Rs250 per kg. A biryani shop owner said he had to pass on the impact of price hike of at least Rs10 per plate to customers as he was compelled to procure basmati Sella rice at Rs20-30 per kg higher rate from wholesale markets. He said he sold a biryani plate at Rs130. “Some other outlet owners are selling at Rs140 per plate depending on the area.” In bigger food shops, premium basmati rice biryani (double plate) is being sold at Rs300-330 and single plate at Rs170-200. While it is not easy for a buyer to judge the quality of rice in biryani, traders and biryani restaurants take full advantage of this ignorance by mixing various varieties. General secretary of the Karachi Retail Grocers Group (KRGG) Farid Qureishi said that price jump in basmati and other varieties of rice was not a matter of concern for the rich who continued to buy expensive commodities without any problem in higher quantities for monthly consumption. He said, however, the lower and middle income groups, who are hit hard by rising food inflation and utility bills, had been limiting their buying as per their requirement. A member of the Rice Exporters Association of Pakistan (REAP), Anis Majeed, said that despite a drop in transportation cost after Rs10 reduction cut in fuel rates on March 1, rice prices had been soaring owing to previous massive hikes in transportation cost because of diesel and petrol rates. He said exports were in full swing, thus putting pressure on local prices despite the fact that exports were made at a very low wholesale rates. Rupee devaluation against the dollar is certainly benefiting exports. Pakistan’s rice production is over seven million tonnes per annum in which exports have been hovering between 3.5 and four million tonnes while the rest is consumed domestically. Export destinations are Europe, Gulf countries, Australia, US, China, African countries, the Far East, etc. According to figures of the Pakistan Bureau of Statistics, basmati exports rose by 41pc and 414,190 tonnes of rice were exported in seven months of fiscal year 2022 from 293,761 tonnes in the same period of the last fiscal year. In terms of value, it is a jump of 28per cent, i.e., $362 million from $282 million. Other varieties of exports grew by 13pc, 2.138m tonnes from 1.886mn tonnes, while it went up by 5.56pc in terms of value, $924mn from $876mn, in seven months of fiscal year 2021. Mr Anis said due to massive hike in freight rates and lack of availability of shipping containers, rice exporters had chartered two to three bulk vessels destined for African countries in the last three months to load rice cargo in these vessels. Each vessel had carried 35,000-40,000 tonnes of rice. Besides, demand from China for Pakistani rice also remained high. In financial year 2021, export of other varieties had plunged to 3.062 million tonnes fetching $1.465 billion as compared to 3.3 million tonnes valuing $1.39bn in FY20. Basmati exports earned $575 million from 629,069 tonnes in FY21 from 865,949 tonnes earning $783mn in FY20. Rice exports in FY21 remained subdued due to low price offered by India for non basmati and higher freight charges from October 2020 amid Covid-19 pandemic. However Chinese buying of Pakistani non basmati rice kept the exports moving.

Berbice rice millers project further reduction in paddy prices

Prices currently being paid by millers for paddy are likely to fall further before any possibility of stability due to internal and external shocks. Berbice rice millers who held a virtual meeting with the Private Sector Com-mission (PSC) on Wednesday requested that the body seek an audience with government to find a reso-lution to the challenges faced. “From tomorrow we might have to change to $60,000 (per tonne) and if these challenges are not addressed we will have to drop as low as $55,000 per tonne of paddy… we are buying paddy today at $65,000 which is not dried, which is not processed on the scale,” was the per-spective offered to Stabroek News by Rayaadul Hakh, who operates in Regions 5 & 6. Hakh declared that the increased cost of production was due to global issues. He point-ed out that apart from the freight cost and government commissions, millers have other production associated expenses.

ASIA RICE Prices rise across major hubs on higher demand for rice

March 10 (Reuters) - Prices of rice exported from top Asian hubs jumped this week on solid demand, while Vietnamese traders also flagged high shipping costs due to the Ukraine crisis.

Thailand's 5% broken rice prices rose to $415-$428 per tonne, on average a peak since late June, from $400-$403 a week ago.

As corn and wheat prices rise, animal feed makers were looking to use more broken rice, pushing up prices across the board, Bangkok-based traders said.

Another trader said he recently received interest from buyers in Europe, the United States, Iraq and Iran for different grades of Thai white rice.

Demand from Hong Kong has also increased, the trader said, with concerns over plans for a city-wide lockdown sparking panic buying by residents.

Thailand exported 459,752 tonnes of rice worth $234 million in January, up 8.92% from the same period last year, the commerce ministry said.

Rates for top exporter India’s 5% broken parboiled variety rose to $371-$378 per tonne from last week's $370-$376, also a peak since mid-June.

"Consumers are trying to build stockpile due to the rally in wheat and corn prices. Demand is improving for rice," said an exporter based at Kakinada in southern state of Andhra Pradesh.

Vietnam's 5% broken rice prices rose to their highest since December at $410-$415 per tonne on Thursday, versus $400 last week, amid higher demand, traders said, with the Ukraine-Russia conflict prompting buyers to place more orders from elsewhere in Asia.

Another trader said shipping costs had surged since the Ukraine-Russia conflict began, with international freight costs rising 50% and domestic freight costs climbing 70%-80%.

"We're concerned costs will keep rising if the conflict continues," the trader said.

Traders said farmers in the Mekong Delta had harvested 20%-25% of the winter-spring crop.

Domestic rice prices in Bangladesh remain high despite good crops and reserves, traders said, adding that the global market was seeing a hike due the Ukraine-Russia conflict.

"It is very much unlikely that local prices will come down soon," a trader said.

Thai rice prices forecast to rise 5% in Q2

Thai rice prices are expected to increase by 5% in the second quarter, pushed up by the war in Ukraine's effect on surging global commodity prices, says veteran trader Chookiat Ophaswongse. Mr Chookiat, an honorary president of the Thai Rice Exporters Association, said there was growing concern about a wheat shortage as Russia and Ukraine are the main producers of the crop, while rising oil prices are likely to drive up overall commodity prices. "Thai rice is expected to see just a 5% increase in prices in the second quarter because there are relatively high rice stocks in India, while rice production is expected to increase this year both in Vietnam and Thailand," said Mr Chookiat. The 5% white rice price in the domestic market is now quoted at 12 baht per kilogramme, down from 16 baht per kg in the same period last year. The free-on-board price of 5% Thai white rice is quoted at US$400 a tonne, higher than Indian white rice, which stands at $355 a tonne, and Vietnam's similar grains at $390 per tonne. For the 2021/2022 harvest season, the association expects Thailand's rice production to increase to 30-32 million tonnes of paddy rice, or 20 million of milled rice, up from 27-28 million tonnes of paddy rice, or 17 million tonnes of milled rice, in the 2020/2021 season. Widespread drought is unlikely this year, said the association, as happened two years ago. Given the ample water supply, second-crop rice production is also expected to increase. He said the war is unlikely to affect Thailand's overall rice exports because shipments to Russia and Ukraine stood at only 6,000 tonnes and 3,000 tonnes, respectively, last year. "It is fortunate export markets in the Middle East, such as Iraq, Iran and Saudi Arabia, will be back this year," Mr Chookiat said. "These countries are net rice importers with a combined million tonnes each year." Thailand shipped 6.11 million tonnes of rice last year, up 6.68% from 5.73 million tonnes in 2020, with exports valued at 108 billion baht, down by 7.14% from 116 billion baht in 2020. The 2021 shipments comprised 2.35 million tonnes of white rice (up 18.9%), 1.4 million tonnes of Thai hom mali rice (down 1.7%), 1.4 million tonnes of parboiled rice (up 1.6%), 550,574 tonnes of aromatic rice (down 4.1%), and 310,878 tonnes of glutinous rice (up 12.4%). The association projects exports rising 14.8% this year to 7 million tonnes, driven by ample water supply. Higher demand is likely thanks to a global economic recovery and a favourable exchange rate.

Asia Rice: India rates slip on weak demand, other hubs muted on holidays

Rice export prices in India fell for a second straight week as buyers opted for cheaper offers from elsewhere, while activity in other Asian hubs remained relatively quiet due to the Lunar New Year holidays. Top exporter India's 5% broken parboiled variety was quoted at $370 to $376 per tonne this week, down from last week's range of $372 to $379. "Myanmar and Pakistan have been offering rice at a competitive price. Some buyers are moving to these destinations," said Himanshu Agarwal, executive director at leading exporter Satyam Balajee. Freight train availability is still limited, and that has been delaying shipments for deals signed last month, he said. Thailand's 5% broken rice prices were little changed at $408-$417 per tonne on Thursday, compared to $408-$415 last week. Thailand aims to ship 7m tons of rice in 2022 as outlook improves One Bangkok-based trader said the market was still muted from the Lunar New Year holidays and most businesses have not resumed. Some orders made before the new year were fulfilled last week and some new deals have been made with buyers from Southeast Asian countries such as the Philippines, Singapore and Malaysia, another trader said. Thailand aims to export 7 million tonnes of rice this year, 14.6% more than 2021. Markets in Vietnam were closed for the Lunar New Year holidays this week. In Bangladesh, domestic rates for the staple were high despite good crops and hefty reserves, hitting consumers. "Prices of food grains has increased in the international market. People are eating more rice to cope with the high global prices of wheat. That is affecting rice prices," the country's agriculture minister Abdur Razzaque told reporters.

Rice prices on the rise as exports suffer from disruption to supply

Rice prices are boiling over due to severe supply chain disruption. Prices have increased on the back of logistics bottlenecks that are limiting rice exports from India, the world’s biggest rice exporter, Mintec market analyst Zanna Aleksahhina told The Grocer this week. As India was facing a shortage of freight trains there was “approximately 1.5 million tonnes of rice stuck at the ports, that India had planned to export this month”, Aleksahhina added. “Unfortunately, there is no option to switch to alternative transport – road transport – since truckers have increased their freight charges too,” Aleksahhina added. Traders were “quoting higher prices for overseas shipments to cover demurrage charges [and] high vessel rates”, she explained. This is translating into higher retail prices. Assosia data for the 12 weeks to 26 January shows a raft of rice SKUs – many from the biggest brands – have been hit. Tilda Basmati 500g and Tilda Basmati Brown Rice 500g, for example, rose from £2.65 to £2.85 in Tesco, while Ben’s Original Golden Vegetable Microwave Rice 250g and Mexican Style Microwave Rice 250g grew 15% to £1.15 in Sainsbury’s. Veetee Heat & Eat Pilau Rice Pots x2 250g and Veetee Heat & Eat Sticky Rice Pots x2 260g were subject to a 10% price increase from £1 to £1.10 in Sainsbury’s. Tilda and Ben’s Original declined to comment. Tesco confirmed it had seen a rise in the wholesale price of rice but said it was trying to minimise the impact on retail prices.