Global Rice News

Pakistan Rice Exports Surge as India Limits Shipments

Pakistan’s rice exports are poised to reach record levels in the coming year due to India’s decision to restrict its own shipments, leading buyers to turn to Islamabad. This has resulted in Pakistan offering rice at nearly 16-year high prices. The surge in exports will help alleviate tight supplies caused by India’s restrictions and bolster Pakistan’s foreign exchange reserves. The country’s rice exports could reach 5 million metric tons in the 2023/24 financial year, up from 3.7 million tons the previous year. Some industry officials are even more optimistic, suggesting exports could reach 5.2 million tons due to improved production. Pakistan could produce 9 to 9.5 million tons of rice in 2023/24 after production fell to 5.5 million tons last year due to floods. Higher production and elevated global prices have allowed Pakistan to export at a rapid pace, with around 700,000 tons of rice exported in December alone. Basmati rice exports could increase by 60% to 950,000 tons this year, while non-basmati exports could surge 36% to 4.25 million tons. In terms of value, Pakistan’s rice exports are projected to exceed $3 billion this year, up from $2.1 billion the previous year.

Pakistan’s rise in rice exports has been fueled by India’s decision to ban exports of non-basmati white rice and impose an export duty on parboiled rice. In India’s absence, countries such as Vietnam, Thailand, and Pakistan are attempting to fill the gap. Pakistan has an advantage due to its relative proximity to buying countries in the Middle East, Europe, and Africa, providing it with a freight advantage. Pakistani rice is being exported mainly to Indonesia, Senegal, Mali, Ivory Coast, Kenya, the European Union, Qatar, and Saudi Arabia. Local prices in Pakistan are gradually rising despite higher production, as buyers switch from India to Pakistan. Pakistan is currently offering 5% broken white rice at around $640 per ton, and parboiled rice at around $680 per ton, compared to $465 and $486 respectively a year ago.

The surge in rice exports is expected to continue until May, by which time Pakistani exporters are expected to sell their entire quantity. Pakistani farmers have been receiving record prices for their paddy, which is likely to lead to an increase in planting area in the next season, further boosting the country’s surplus for exports.

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