With demand for Pakistani rice rising 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 commodity experts.
In November 2024, Pakistani rice exports grew by 17% in quantity and 5.6% in dollar value compared to November 2023. Non-basmati rice exports rose to 781,882 tons from 665,851 tons during the same month last year, while basmati rice exports increased by 51%. During the first five months of the fiscal year, it reached 370 thousand tons, compared to 244,664 tons during the same period last year.
This performance comes amid intense competition from India, which lifted an export ban on various rice varieties earlier this year. To boost its exports, India reduced the minimum export price of basmati rice, devalued its currency by 2.2%, and diverted subsidized rice allocated for the public distribution system to export markets.
Complaints against these practices have been submitted to the World Trade Organization by several countries, including the United States and Canada, and investigations are still ongoing at Indian ports.
In contrast, Pakistani rice exports benefited from growing demand in Far Eastern countries such as Indonesia, Malaysia, Singapore and the Philippines, which faced agricultural shortages due to the El Niño climate phenomenon.
During the first five months of FY25, Pakistan exported rice worth $1.515 billion, representing a 35% increase compared to the same period last year. In fiscal year 2024, rice exports totaled $3.9 billion, an increase of 78% year-on-year.
With India’s ban on white rice export creating opportunities, Pakistan has been able to secure large orders from Indonesia, Philippines and Malaysia by offering competitive prices and high quality.
Experts expect the Philippines to become the largest importer of rice in 2025, and Pakistan is well positioned to capture a large share of the market.
Despite these gains, Pakistan’s rice industry faces some challenges, especially in basmati rice exports, where India’s high subsidies for inputs such as fertilisers, seeds and irrigation give it an advantage.