Global Rice News

Rice Exporters Struggle as Weekly Inflation Increases

The weekly inflation reading unexpectedly rose by 0.96% in the week ending April 4, 2024. This increase in prices was driven by hikes in food items, energy, and footwear, marking the end of a recent slowdown in week-on-week inflation.

According to data from the Pakistan Bureau of Statistics (PBS), the price of ladies’ sandals increased by 12.52% to Rs899 per pair ahead of Eid celebrations next week. Tomato prices also saw a significant jump, rising by 11.93% to Rs103.77 per kg. Gents’ sandals became 8.70% more expensive, reaching Rs2,499 per pair. Additionally, the price of petrol rose by 3.45% to Rs290.47 per litre.

Other commodity prices increased by up to 3%, including chicken, long cloth, onion, bread, beef, garlic, mutton, and rice. The Sensitive Price Indicator (SPI), which tracks 51 essential commodities in 17 cities nationwide, reflected these increases.

Out of the 51 commodities tracked, prices of 16 items (31.37%) increased, 13 items (25.49%) decreased, and 22 items (43.14%) remained unchanged compared to the previous week.

When compared to the same week of the previous year, weekly inflation rose by 29.45%. This increase was primarily driven by a 570% spike in gas prices for Q1 and a 107.59% increase in onion prices. Other essential goods also saw significant price increases compared to the previous year.

The monthly inflation measured by the Consumer Price Index (CPI) slowed down to 20.7% in March, dropping from the multi-decade high of 38% in May 2023. Finance Minister Muhammad Aurangzeb has expressed hope that inflation will continue to taper off, primarily due to the high base effect. This may lead to the central bank’s first rate cut soon.

However, the increase in inflation poses challenges for rice exporters in Pakistan. With rising prices and uncertain market conditions, Pakistani rice suppliers, including rice exporters and rice mills, are grappling with the impact on their business. The fluctuating prices of commodities like white broken rice and basmati rice affect the overall rice export prices from Pakistan.

Despite the challenges, Pakistan rice suppliers and companies are working to meet the demand for quality rice from international markets. The rice business in Pakistan remains active, with exporters and suppliers in Karachi playing a crucial role in the rice export industry. They offer various types of rice, including IRRI 6 rice and Basmati rice, ensuring a steady supply to global customers.

Source: The Express Tribune