KARACHI: Heavy rains and widespread flooding in regions of India and Pakistan have raised concerns over output of the premium staple, driving prices higher as supplies are expected to fall. Floods have severely affected the crops, but with waters now receding, losses are expected to remain limited provided there is no additional rainfall, said Nitin Gupta, senior vice-president at Olam Agri India.
Heavy rainfall in late August and earlier this month caused the Ravi, Chenab, Sutlej and Beas rivers to overflow, flooding these regions. Initial assessments indicate that crops such as paddy, cotton and pulses on nearly one million hectares were affected in Punjab and Haryana, said an Indian government official. The floods have hit farmers hard, just as crops such as basmati rice and cotton were nearing harvest, said Ibrahim Shafiq, export manager at Latif Rice Mills Pvt Ltd. In India and Pakistan, paddy seedlings are usually transplanted in June-July, with harvesting starting in late September.
The industry was expecting a bumper crop, but the damage is likely to reduce supplies and push basmati rice prices higher. — Reuters
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