KARACHI, Feb 22: Influenced by soaring world prices all rice varieties in the domestic market have registered a rise of 12 to 25 per cent in one month.

Irri-6 rice, which was being quoted at around Rs1,930 per 100 kg at the end of December was being sold at Rs2,150 by the end of January, showing Rs220 or 12 per cent price increase.

Another popular variety of Sindh, Irri-9, was available at Rs2,650 per 100 kg and was being quoted at Rs3,300 by the end of last month, up by Rs650 or 24.5 per cent.

The other popular variety of rice such as PK-386 surged by Rs750 or 21.7 per cent from Rs3,450 per 100 kg to Rs4,100. Basmati super (new) became dearer by Rs700 or 15.2 per cent from Rs4,600 per 100 kg to Rs5,300 and Basmati super (old) was higher by Rs600 or 11 per cent from Rs5,500 per 100 kg to Rs6,100.

Traders said that from Feb 1 to 15 prices most of the varieties have gone up by Rs150 to Rs300 per 100 kg. There was almost daily increase in prices, which had made the rice trade highly volatile for domestic and export contracts, they said.

The government is not coming up with correct production figures of the new paddy crop, whose harvesting began in November last. Traders and exporters also did not know the exact size of new crop, rice analysts said.

Some rice traders believe that the new paddy crop is short because heavy rains at the time of sowing season last year had damaged the crop. They said that floodwater from Balochistan had found its way to the rice-growing areas of Sindh damaging severely the paddy crop.

Since there were no carry-forward stocks from last year the new paddy crop came under pressure immediately after its harvesting began.

Karachi Wholesalers Grocers Association President Anis Majeed told Dawn that the current paddy crop was good and it would be around 5.5 million tons.

He alleged that the growers and millers were holding back their stocks and if the government compelled them to bring their stocks in the market, the prices would settle down.

He said that in Pakistan there was a single paddy crop in 12 months but it is consumed and exported the whole year, therefore, it was always hoarded at different stages.

Mr Majeed said unlike in the past, when every segment involved in rice, including growers, used to part with their stocks or crop at the earliest but the rapidly increasing prices in the world market this season were creating havoc and causing rapid price flare-up in the domestic market.

He strongly suggested that the government should introduce the Minimum Export Price so that the exporters, who made export contracts on the basis of increasing world rice prices, should not have direct impact on domestic prices.

He further said that an exporter was willing to pay any price to meet his contract and this makes prices rise in the local market.

Rice Exporters Association of Pakistan (Reap) vice-chairman Abdul Baseer was also of strong view that there was no shortage of rice in the country and unprocessed paddy was still lying in Punjab and Sindh. He further said that as most of the millers did not have mechanised dryers, therefore, they had to depend on sunlight.

He alleged that many outsiders, particularly textile tycoons, also got involved in rice business with big money and this could be one of the reasons behind the price hike.