Pakistan takes advantage of rice export opportunities amid India’s restrictions
Published on: February 1, 2024.
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Pakistan Set to Experience Surge in Rice Exports Amidst India’s Limitations
Pakistan is on the verge of a remarkable increase in rice exports until June, as a result of India’s restrictions on shipments. This redirection of buyers towards Islamabad, despite the country’s nearly 16-year high prices, is expected to bolster Pakistan’s essential foreign exchange reserves.
To counter the tight supplies caused by India’s limitations, Pakistan aims to achieve a remarkable milestone of 5 million metric tons in rice exports during the 2023/24 fiscal year. This is a significant increase from the previous year’s 3.7 million tons. Some optimistic estimates even suggest that exports could surpass 5.2 million tons, showcasing improved production following a decline to 5.5 million tons caused by last year’s floods.
It is projected that basmati rice exports may surge by 60%, reaching 950,000 tons, while non-basmati exports could rise by 36% to 4.25 million tons. In terms of value, Pakistan’s rice exports are expected to exceed $3 billion, a substantial increase from the $2.1 billion achieved in the previous year.
The shift in buyer preference from India to Pakistan has resulted in gradually rising local prices, despite enhanced production in the country.
Pakistan’s strategic geographical location in close proximity to the Middle East, Europe, and Africa provides it with a freight advantage over competitors such as Vietnam and Thailand. This enables Pakistan to fill the void left by India effectively. While there is speculation that India might reconsider export restrictions after the May elections, Pakistani exporters have already shipped approximately two-thirds of the annual quantity by the end of May.
The record prices received by Pakistani farmers are likely to encourage expanded planting, leading to a larger surplus for exports in the upcoming season, dependent on favorable weather conditions.
Key Takeaways:
- Pakistan is set to experience a surge in rice exports until June due to India’s restrictions on shipments.
- Pakistan aims to achieve 5 million metric tons in rice exports in the 2023/24 fiscal year.
- Basmati rice exports may surge by 60% to reach 950,000 tons.
- Non-basmati exports could rise by 36% to 4.25 million tons.
- Pakistan’s rice exports are expected to exceed $3 billion.
- Pakistani exporters have already shipped around two-thirds of the annual quantity by May-end.
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