Basmati Prices Increase by Rs. 650 Per Maund As ‘Investors’ Enter the Market

Average Paddy rice rates for the Basmati 1509 variety have increased by Rs. 650 per maund (40kg) to Rs. 4,450 after hitting a low of Rs. 3,800 per maund in the past few weeks. Prices in Kasur, Sahiwal, Shiekhupura, and Bahawalnagar are hovering between Rs. 4100-4600 per maund while in other regional markets like Faisalabad, Gujranwala, Multan, Jhang and Bahawalpur stand between Rs. 4250-4700 per maund. “The month of October is always decisive when it comes to Rice prices as the season for varieties like Basmati-1509, 1692 and Kainat is gradually coming to an end and arrivals are declining but crops from Basmat-515 and Super Kernel are yet to come from South Punjab regions and that’s also why Paddy prices are increasing as the demand is still there”, a market consultant told ProPakistani. He noted that hoarders, often labeled as ‘investors,’ tend to enter the market late during periods of high volume that push prices down. Two weeks ago, when prices hit the lower bracket at Rs 3,500 per maund, they seized the opportunity to start buying, contributing to the recent pressure in the market. However, the consultant cautioned that once these temporary buyers exit, prices are anticipated to decline, likely around December. Notably, the Federal Committee of Agriculture recently reviewed the production of major Kharif crops and forecasted an 18 percent jump in Rice production to 8.62 million tons during 2023-24 from 7.32 million tons during 2022-23 and a 12 percent rise in the cultivated area to 3.35 million hectares from 2.97 million hectares during last year. The rise in acreage and production is driven by last year’s high-profit margins reaped by farmers as international rice prices soared to a 15-year high, a robust industry chain ensured significant exports reaching $2.1 billion, while last year’s devastating floods declined the domestic crop output by 21.5 percent, as per government estimates.