Pakistan’s rice exports poised for 10% growth amid global demand surge

With rising demand for Pakistani rice due to its quality and aroma, exports are expected to increase by 10% in the first half of the fiscal year 2024-25, according to commodities experts.

This performance comes amid stiff competition from India, which lifted its export ban on various rice varieties earlier this year. To boost its exports, India reduced its minimum export price for Basmati rice, devalued its currency by 2.2%, and diverted subsidized rice meant for its Public Distribution System (PDS) to export markets.

Complaints against these practices have been lodged with the World Trade Organization by several countries, including the United States and Canada, and investigations are underway at Indian ports.

In contrast, Pakistan’s rice exports have benefited from growing demand in Far Eastern countries such as Indonesia, Malaysia, Singapore, and the Philippines, which faced agricultural shortfalls due to the El Nino weather phenomenon.

During the first five months of FY25, Pakistan exported rice worth $1.515 billion, marking a 35% increase over the same period last year. In FY24, rice exports totaled $3.9 billion, an increase of 78% year-on-year.

With India’s white rice export ban creating opportunities, Pakistan has secured substantial orders from Indonesia, the Philippines, and Malaysia by offering competitive prices and superior quality.

Experts predict that the Philippines will be the largest rice importer in 2025, and Pakistan is well-positioned to capture a significant share of the market.

Despite these gains, Pakistan’s rice industry faces some challenges, particularly in Basmati exports, where India’s high subsidies on inputs like fertilizers, seeds, and irrigation give it an edge.

Tags: exports, Indonesia, rice, non-basmati rice, Basmati rice, Pakistan, India, Malaysia, Singapore, demand, The Philippines