pakistan grabs rice export chances amidst India’s limitations
Published on: February 2, 2024.
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Pakistan is set to experience a historic surge in rice exports as a result of India’s limitations on shipments. This shift in focus has diverted buyers towards Islamabad, despite Pakistan’s higher prices. The increase in exports aims to counter the tight supplies caused by India’s restrictions and strengthen Pakistan’s foreign exchange reserves.
Previously, India served as the primary global rice exporter, but the halt on non-basmati white rice exports last year has created an opportunity for Pakistan. Pakistan is now expected to reach 5 million metric tons of exports in the 2023/24 fiscal year, up from 3.7 million tons the previous year. Some estimates even suggest that exports could reach 5.2 million tons. This boost in exports is driven by improved production following a decline to 5.5 million tons due to floods last year.
Basmati rice exports may experience a 60% surge, reaching 950,000 tons, while non-basmati exports could rise by 36% to 4.25 million tons. In terms of value, Pakistan’s rice exports are projected to exceed $3 billion, up from $2.1 billion the previous year.
As the preference of buyers shifts from India to Pakistan, local prices have gradually increased, despite the higher production. Pakistan’s geographical proximity to the Middle East, Europe, and Africa provides a freight advantage over competitors like Vietnam and Thailand, enabling Pakistan to fill the gap left by India’s restrictions. Although there is speculation that India may reconsider its export restrictions after May’s elections, Pakistani exporters have already shipped around two-thirds of the annual quantity by the end of May.
The record prices received by Pakistani farmers are expected to encourage expanded planting, resulting in a larger surplus for exports in the upcoming season, assuming favorable weather conditions.
Overall, Pakistan’s rice exports are experiencing significant growth, and the country is capitalizing on the opportunity presented by India’s limitations. The surge in exports will not only benefit Pakistan’s economy but also strengthen its foreign exchange reserves.
Source: [Minute Mirror](https://minutemirror.com.pk){:target=”_blank” rel=”nofollow”}
