Pakistan's Rice Exports are Expected to Grow


Published Date: January 15, 2025
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According to experts in the commodities sector, Pakistani rice, a crucial commodity that guarantees food security and generates foreign exchange for the nation, is expected to maintain its upward trend in export markets next year as well. This is because the commodity has gained widespread appreciation in the current year for its high quality and pleasant aroma.

Rise In Rice Exports

Pakistan's rice exports in November 2024 did remarkably well, with a 17% increase in quantity and a 5.6% increase in dollar value, despite all the odds, uncertainty, and propaganda. Non-Basmati rice exports increased from 665,851 tons in November 2023 to 781,882 tons in November 2024.

Volumes of Basmati rice rose by 51% from 244,664 tons during the same period last year to 370,000 tons during the first five months (July–November) of the current fiscal year.

Commodities expert Hamid Malik told The Express Tribune, “With the pace witnessed in the past five months, we can easily predict a 10% surge in rice exports during the first half of financial year 2024-25.”

Competition From Rice Growing Nations

He added that despite fierce competition from major rice-growing nations, particularly India, which has lifted a ban on exporting all types of rice, Pakistani exporters had managed to accomplish this feat, creating “tough competition with our rice exports.”

India started reducing the minimum export price of Basmati rice a few months ago and eventually eliminated it completely in order to allow exports at the lowest feasible prices.

Through open market operations, India also released government stocks intended for the Public Distribution System, which were later diverted for exports.

Since the beginning of the new rice season in July 2024, the Indian government has also devalued the rupee by 2.20%. The cost of brown basmati rice in Pakistan is currently $180 more than in India.

In 2024, Pakistani rice has performed well internationally, as demand increases from Far Eastern nations affected by the El Nino weather phenomenon, including Indonesia, Malaysia, Singapore, and the Philippines. 

The Pakistan Bureau of Statistics reports that rice exports totaled $3.9 billion in the fiscal year 2023–2024, a 78% increase over the previous year. Now, rice exports totaled $1.515 billion in the first five months of FY25, a nearly 35% increase over the same period last year.

Thus, following India's ban on the export of white rice, Pakistan has become a major supplier of rice to these nations. Furthermore, Pakistan has received significant orders from Malaysia, the Philippines, and Indonesia due to its excellent quality and competitive prices.

“The Philippines is anticipated to be the biggest importer of rice in 2025, and Pakistan has a good chance of obtaining the most orders because of the high-quality rice it supplied in 2024. Along with India, Thailand, and Vietnam, Pakistan will rank among the top four rice exporters in 2025,” according to Malik.

He warned that India's high subsidies on guaranteed purchases at a set price, the minimum support price, and subsidized fertilizer, pesticides, seeds, and irrigation water would make Basmati exports fiercely competitive. Nevertheless, Pakistan's rice industry is efficient, sustainable, and free of subsidies and concessions, with no government involvement during the purchasing process.

 

REFERENCE- tribune.com

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