India’s Restrictions Boosting Pakistan’s Rice Exports to All-Time High
Published on: February 3, 2024.
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Pakistan Set to Increase Rice Exports as India Restricts Shipments
Due to India’s decision to reduce its own rice shipments, Pakistan is expected to export more rice than ever before by the end of the current fiscal year. Islamabad is selling rice at prices that haven’t been seen in over 16 years, helping to replenish its depleted foreign exchange reserves and support its economy.
“We’ve seen a solid demand for rice in the last few months, mainly because India stopped exporting,” said Chela Ram Kewlani, chairman of Rice Exporters Association of Pakistan (REAP). India, which is the world’s largest exporter of rice, imposed curbs on shipments last year, including export duties on parboiled rice and a prohibition on non-basmati white rice.
Experts predict that Pakistan’s rice exports may reach 5 million metric tonnes in the fiscal year 2023/24, up from 3.7 million tonnes the previous year. Some even believe that shipments could exceed 5.2 million tonnes due to a significant increase in output.
Pakistan’s rice exports are expected to fetch over $3 billion in value this year, an increase from the previous year’s $2.1 billion. Basmati rice exports are anticipated to jump 60% to 950,000 tons, while non-basmati exports may see a 36% surge to 4.25 million tons.
With India out of the market, buyers are turning to Pakistan, causing local prices to rise gradually. Pakistan is currently offering 5% broken white rice at around $640 per ton and parboiled rice at around $680 per ton, significantly higher than a year ago.
Pakistan mainly exports non-basmati rice to Indonesia, Senegal, Mali, Ivory Coast, and Kenya, while premium basmati rice is shipped to the European Union, Qatar, and Saudi Arabia.
In the absence of Indian rice, countries such as Vietnam, Thailand, and Pakistan are attempting to fill the gap. However, Pakistan’s relative proximity to buying countries in the Middle East, Europe, and Africa gives it a freight advantage.
Pakistani farmers are receiving record prices for their paddy, which is likely to incentivize them to expand planting for the next season. Kewlani believes that even in the next season, Pakistan will have a larger surplus for exports if the weather conditions are favorable.
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Source: https://www.firstpost.com
