Global Rice News

Rice is Pakistan’s key agricultural export, but it lacks the support that other major cash crops receive. Unlike India, Pakistan does not have a minimum support price or energy subsidies for rice growers and exporters. As a result, India, with its strong support mechanisms, holds a significant share of global rice exports. India’s export ban on wheat, sugar, rice, and onions has caused prices to skyrocket, threatening food security worldwide.

In contrast, Pakistan’s rice exports have seen significant growth in recent years. During the first eight months of fiscal year 2024, exports reached a record high of $2.5 billion, compared to $1.1 billion in the same period the previous year. This growth has raised concerns in India that their Basmati exports may decline, while fears in Pakistan of rising prices have also emerged.

The success of Pakistan’s rice exports can be attributed to several factors. The country had a bumper crop of 9.5 million metric tonnes, and the Ministry of Commerce strategically implemented an upward revision of Minimum Export Prices (MEPs). This increase in MEPs allowed Pakistan to fetch higher prices for its crops, boost foreign reserves, and stabilize local Basmati rice prices. Additionally, Pakistan has made progress in non-traditional markets such as Indonesia, the Philippines, Malaysia, and Russia, expanding its export opportunities.

Despite these accomplishments, there are challenges that need to be addressed. The warmer and drier weather caused by El Nino has reduced rice harvests in the Far East, leading to an increase in demand for Pakistani rice in countries like Indonesia, the Philippines, and Malaysia. However, transportation costs remain a significant barrier to export growth. Utilizing cargo trains for inland transportation could help reduce costs and increase exports. Additionally, there is a need to develop more varieties of Basmati rice and prioritize the growth of hybrid coarse rice in Basmati zones to expand export opportunities.

It is also crucial for the Ministry of Commerce and the Federal Board of Revenue to address misdeclared and under-invoiced rice exports to countries like Afghanistan and Iran. By applying the same MEPs to both land and sea exports, Pakistan can curb these fraudulent practices and ensure fair competition.

With the right planning and a pragmatic approach, Pakistan has the potential to further increase its rice export earnings. However, it requires careful consideration, innovative strategies, and a departure from outdated notions. By taking these steps, Pakistan can solidify its position in the global rice market and continue to contribute to its agricultural economy.

Source: Source