Pakistan Set to Surpass India in Basmati Rice Exports
Published on: March 2, 2024.
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India Facing Tough Competition from Pakistan in Basmati Rice Exports
India, known for its exports of basmati rice, is expected to witness a decrease in its exports in 2024. This comes as Pakistan gears up to seize the global market with its competitive pricing and increased production.
Both countries have long been rivals in the rice export business. They are renowned for their distinctive fragrance and elongated grains, which cater to markets including the USA, UAE, Saudi Arabia, Yemen, Iraq, and Iran.
In 2023, India experienced a significant rise in rice exports, shipping 4.9 million metric tons of grain and generating a record revenue of $5.4 billion. This surge in exports came at a time when Pakistan faced production challenges.
“Last year, buyers were rushing to stock up when Pakistan was facing production issues. However, this year, Pakistan is offering lower prices than India due to increased production,” said Vijay Setia, an exporter from Haryana in India.
Forecasts predict that Pakistan’s rice exports will reach 5 million tons in the ongoing fiscal year of 2023-24, surpassing the 3.7 million tons exported in the previous financial year.
Iran, the largest importer of Indian basmati rice, reduced its purchases by 36% in 2023. This decline further highlights the struggle Indian rice exporters face in remaining competitive in the market. The Indian government’s imposition of a minimum export price of $1,200 per ton adds to the challenge, as it exceeds the previous MEP of $950 set in October.
Indian exporters now find it difficult to maintain their foothold in the global rice market due to these pricing constraints.
To stay up to date with the latest news and trends in the rice export industry, visit [Source](https://www.bolnews.com).
