Global Rice News

Pakistan Rice Exports Soar as India Slows Shipments

Pakistan’s rice exports are predicted to reach a record level by June as India’s decision to restrict its own shipments leads buyers to turn to Islamabad for their rice needs. This surge in exports will help alleviate tight supplies caused by India’s restrictions and contribute to bolstering Pakistan’s foreign exchange reserves.

“We’ve seen a solid demand for rice in the last few months, mainly because India stopped exporting,” said Chela Ram Kewlani, Chairman of the Rice Exporters Association of Pakistan (REAP).

India, which typically accounts for nearly 40% of global rice trade, banned exports of non-basmati white rice last year, and also imposed an export duty on parboiled rice.

Pakistan’s rice exports for the 2023/24 financial year are expected to jump to 5 million metric tonnes, compared to last year’s 3.7 million tonnes. Some industry officials are even more optimistic, suggesting the exports could reach 5.2 million tonnes due to substantial improvements in rice production.

The improved production levels in Pakistan have allowed the country to export at a rapid pace. In December alone, Pakistan exported around 700,000 tonnes of rice.

Basmati rice exports from Pakistan are expected to increase by 60% this year to 950,000 tonnes, while non-basmati exports are projected to surge by 36% to 4.25 million tonnes.

In terms of value, Pakistan’s rice exports are set to generate more than $3 billion this year, an increase from $2.1 billion in the previous year.

Traditionally, India offered non-basmati rice at a lower price than Pakistan, but with India out of the market, buyers are turning to Pakistan. Consequently, local prices in Pakistan are gradually rising despite higher production levels.

Pakistan is currently exporting non-basmati rice mainly to Indonesia, Senegal, Mali, Ivory Coast, and Kenya, while premium basmati rice is being shipped to the European Union, Qatar, and Saudi Arabia.

Pakistan’s relative proximity to buying countries in the Middle East, Europe, and Africa gives it a freight advantage over competitors like Vietnam and Thailand.

Industry experts predict that India may review its export curbs after the elections in May. However, Pakistani exporters have already shipped around two-thirds of the entire year’s shipments, and they are expected to sell the entire quantity before May-end.

Pakistani farmers are benefitting from record prices for their paddy, which is likely to encourage them to expand planting areas in the next season.

“Even in the next season, Pakistan will have a bigger surplus for exports if weather supports,” Kewlani said.

Source: The News Pakistan