Phenomenal Growth Propels Rice Exports Beyond $3 Billion Mark

Pakistan’s Rice Exports Reach Historic Peak at $2.121 Billion

Pakistan has achieved a historic milestone with its rice exports reaching $2.121 billion in the first seven months of the fiscal year 2024. This impressive growth is attributed to a bumper crop and a well-executed strategy following India’s ban on rice exports. The country has exported approximately 3.322 million tons of rice during this period, compared to $981.63 million and 1.981 million tons in the same period last year.

Exports Breakdown

Pakistan has earned $1.665 billion through the export of non-basmati (coarse rice) and $456.14 million through the export of basmati rice during the first seven months of the current fiscal year. This marks a significant increase compared to the same period last year.

Exports of non-basmati rice have recorded 2.924 million tons, while basmati rice exports have reached 398,021 tons. The average unit price for basmati rice exports is $1146 per ton, and for non-basmati rice, it is $567 per ton.

Pakistan has also witnessed a rise in rice exports to various countries, including Indonesia, Malaysia, Afghanistan, and African markets such as Senegal, Djibouti, and Madagascar. UAE, Saudi Arabia, and Oman were the top buyers of Pakistani Basmati rice during this period.

Sustainable Growth

Shamsul Islam Khan, a leading rice exporter, believes that Pakistan’s rice export growth is not solely due to India’s export restrictions. He attributes this growth to the larger size of rice production in Pakistan, which is expected to be around 9.5 million tons in the current season. Additionally, Pakistan’s competitive prices compared to other rice-exporting countries contribute to its sustained growth.

However, there are challenges that need to be addressed, such as the risk of aflatoxin and maximum residue levels (MRLs) in European countries. To achieve sustainable export growth, Pakistani rice exporters should focus on branded exports in consumer packaging and revive old varieties of Basmati rice with improved yield and characteristics.

Future Outlook

With the current pace of rice exports, it is projected that Pakistan may exceed 5 million tons of exports and earn over $3 billion by the end of this fiscal year. To further increase exports, the country needs to address challenges related to quality standards and focus on branded exports.

Overall, Pakistan’s rice sector has achieved remarkable growth without government intervention or subsidies, and it has the potential to contribute significantly to the country’s economy.