Global Rice News

Pakistan Rice Exporters Achieve Record-Breaking Shipments, Driven by Strong Crop Yield and Rising Prices

Pakistan’s rice exports have reached unprecedented levels in the seven months leading up to January 31, thanks to a combination of favorable crop conditions and increased prices. Chela Kewlani, chairman of the Rice Exporters Association of Pakistan, expects shipments to exceed 5 million metric tons for the first time ever. This surge in exports has already surpassed the value of exports for the entire previous fiscal year.

During the months of July to January, basmati rice exports saw a substantial increase of 24%, reaching 398,764 metric tons compared to 320,751 metric tons in the previous year, as reported by the Pakistan Bureau of Statistics. Non-basmati rice exports also experienced remarkable growth, rising to 2.924 million metric tons in the seven months ending on January 31, in contrast to 1.661 million metric tons during the same period the previous year.

Global rice prices have risen due to an export ban imposed by the Indian government, which was intended to curb inflation but resulted in an increase in global rice prices. India previously held around 40% of the market share, making this ban a significant contributing factor. Chela Kewlani stated that this rise in prices has benefited Pakistan, as the price of rice has increased by 25% to 30%, leading to higher foreign exchange earnings through rice exports.

In terms of financial value, the current fiscal year has generated exports worth $2.1 billion, compared to $1.083 billion in the previous year, marking an impressive increase of 95%, according to government data. Average prices for basmati rice exports were $1,146 per metric ton, up from $1,044 per metric ton the previous year. Non-basmati rice exports fetched an average price of around $567 per metric ton, increased from $449 per metric ton the previous year.

Pakistani rice prices have been assessed by S&P Global Commodity Insights, with Pakistani 5% broken white rice being valued at $602 per metric ton FOB on February 16. Pakistani Brown Basmati 2% broken rice was valued at $861 per metric ton FOB FCL in the week leading up to February 16.

With such a successful crop season, Pakistan’s rice exporters have begun to expand into new markets. Indonesia, Malaysia, and several African countries have seen an increase in rice imports from Pakistan, leading to a significant uptick in orders. Non-basmati rice exports to Indonesia reached $274 million in the seven months ending on January 31, compared to $27 million during the same period the previous year. Exports to Malaysia increased to $206 million from $53 million, while exports to Afghanistan rose to $153 million from $77 million.

In addition to these markets, Pakistan is actively seeking to enter new markets such as Mexico and Russia. Approvals from both the plant protection departments and the respective countries’ counterparts are currently being sought, as all necessary health and quality standards have been met.

The top buyers of Pakistani basmati rice during the first seven months of the current fiscal year were the UAE with $85 million, Saudi Arabia with $51 million, and Oman with $43 million. Additionally, exports to Yemen have seen a significant increase from $1.84 million during the same period last year to $28.5 million this year.

This remarkable growth in Pakistan’s rice exports is a testament to the country’s agricultural capabilities and the dedication of its rice exporters. With a favorable crop yield, rising prices, and expansion into new markets, Pakistan’s rice industry is thriving.

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