KARACHI, Feb 20: The Competition Commission of Pakistan (CCP) will take action against the rice cartels provided the representative bodies of the rice trade lodge a formal complaint, sources in the Union of Small and Medium Enterprises (Unisame) revealed on Wednesday.

Rice traders and exporters have been complaining that hoarding and smuggling have been the main factor behind rapid rise in prices of all varieties of rice.

In the domestic market prices of all major rice varieties registered a steep rise during a week’s time. Prior to the election Irri-6 coarse rice (unprocessed) was being quoted at Rs21.20 per kg but on Wednesday it was being quoted at Rs22.60 per kg. About six months back the price was at around Rs13 to Rs14 per kg.

Similarly, Irri-9 (unprocessed) was quoted at Rs31.50 per kg last week and now it has gone high to Rs33 per kg. Another variety of Sindh rice, D98, which was sold at Rs42 per kg has become dearer by Rs2 to Rs44 per kg.

After adding the processing cost, which comes to around 10 per cent of purchase price, there would be further increase in prices of each variety of rice. The Punjab variety-386 rice surged by Rs3.50 per kg to Rs43.50 over last week’s price, Punjab super was higher by Rs4 per kg to Rs59 and Sindh super rose by Rs3 to Rs53 per kg over last week’s price.

The CCP, taking notice of newspaper reports, has asked Unisame President Zulfikar Thaver to lodge a formal complaint in the manner prescribed in the regulations 18 and 19 of the Competition (general enforcement) Regulations, 2007.

It has assured Unisame to initiate inquiry and also take remedial measures in accordance with Competition Ordinance, 2007 if the situation is determined by the commission as being a violation of the said law.

Mr Thaver said that presently, all rice traders, big or small, faced with a situation where they could not meet their export commitments. He said the rising pattern of rice prices indicates that on an average there is daily increase in prices between four to five per cent in all varieties of rice.

He further said that the growers and millers were not ready to part ways with their stocks. The growers are not ready to sell their paddy as they get higher price with each passing day.

Similarly, the Unisame chief said that the millers were also not ready to dispose off their stocks. Consequently, he said all are working in cartels and causing great damage to the rice traders and exporters as well as the common man, who have to pay higher price at each buying.

Above all, Mr Thaver said that the unbridled smuggling of rice to Afghanistan and large scale border trade of rice with Iran and India were causing unprecedented shortage of produce in the domestic market.

He urged upon the authorities to take similar measure as were adopted in the case of wheat hoarders and smugglers which eased the wheat and wheat flour supplies in the local market.

He said when India could impose minimum export price (MEP) on rice to discourage exports and Egypt could impose ban on exports, there was no reason as to why Pakistan could not take such measures, which could help ease and bring down rice prices in the domestic market.