Pakistan’s Basmati Rice Exports Surge Amid Declining Indian Market
Published on: March 2, 2024.
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India’s basmati rice exports may see a decline in 2024 as Pakistan improves its production and offers competitive prices, according to industry sources. Both countries are major exporters of premium long grain rice to countries like Iran, Saudi Arabia, and the United States. India’s basmati rice exports are projected to increase by 11.5% to 4.9 million tonnes in 2023, surpassing the previous record of 5 million tonnes in 2020. This growth is attributed to reduced supply from Pakistan and stockpiling efforts by importing countries. The top rice exporter earned a record $5.4 billion in 2023 from shipments of basmati rice, thanks to higher prices. Meanwhile, Pakistan’s rice exports are expected to increase to 5 million tonnes in the 2023/24 fiscal year from 3.7 million tonnes last year, with the depreciation of the Pakistani rupee making their exports more competitive. It is worth noting that India’s basmati prices have started to decline due to reduced export demand, while their production has increased by 10%. Despite a decrease in purchases by Iran, increased shipments to Iraq, Oman, Qatar, and Saudi Arabia will make up for the shortfall. India’s exports faced challenges in September and October due to a minimum export price imposed by the government, but they quickly recovered. However, exports have started to weaken again in January due to increased freight costs caused by transport disruptions.
