Global Rice News

According to reports, the Pakistani rice market is expected to have a strong year in 2024, following a positive second half of 2023. Despite concerns about macroeconomic conditions and the potential for India to relax its restrictions on rice exports, the market has seen a surge in exports in recent months.

After a slow start in 2023 due to devastating floods in the country, Pakistan’s rice market rebounded strongly. The ban on India’s non-Basmati white rice exports, along with a near-record crop production and large exportable surplus, contributed to this growth. Competitive prices also played a role.

In line with this trend, the US Department of Agriculture predicts that Pakistani milled rice production will increase by 64% in the marketing year 2023-24, reaching 9 million metric tons. This would be the second-largest crop ever, just slightly below the record 9.3 million metric ton crop in the previous marketing year.

Rice exports are also expected to reach a new record in 2023-24, surpassing the previous record of 4.8 million metric tons achieved in the year before. This surge in exports is attributed to the export ban imposed by India, which has led many buyers from Africa and the Far East to shift their purchases to Pakistani rice.

Pakistani exporters have been able to offer competitive prices in the international market due to a large exportable surplus. However, prices are expected to rise in the near future due to increasing demand and concerns about crop output from Southeast Asia caused by El Nino.

Despite these challenges, the outlook for the Pakistani rice market remains positive. Iran is likely to become a major buyer of Pakistani rice in the first half of 2024, while Chinese demand is expected to increase in the fourth quarter of the year. African destinations are expected to remain the leading export markets for non-Basmati rice.

However, there are some downside risks to the market. The rally in the rice market was largely driven by the Indian export ban, and any indication that India may lift the ban could lower prices. Exporters are cautious in their offers, but they remain confident in the surplus crop and the ability to navigate potential challenges.

Another concern for market participants is the possibility of a drop in global rice prices, which could significantly impact the rice industry. With high bank interest rates and carrying costs, exporters and millers are already facing difficulties in holding stocks. Volatility in foreign exchange rates is also a concern, as it creates uncertainty for exporters looking to make forward contracts.

On the other hand, the Basmati market is expected to remain stable in 2024. With a good crop in 2023, there is a consistent supply and demand for Basmati rice. The European Union and the Middle East are expected to continue being the main markets for Pakistani Basmati rice. However, prices may not be as high as they were in 2023, as supply tightness in early 2023 due to floods pushed prices up, but they dropped significantly towards the end of the year.

• Rice Exporters
• Pakistan Rice Exporters
• White Broken Rice
• Pakistan Rice
• Rice Suppliers
• Rice Exporters from Pakistan
• 25% Broken Rice
• Pakistan Rice Supplier
• Pakistan Rice Supplier
• Pakistan Rice Companies
• Rice Mills in Pakistan
• Rice Business in Pakistan
• Rice Suppliers Pakistan
• Pakistani Rice Prices
• IRRI 6 Rice Price
• Basmati Rice Price List
• Rice Export From Pakistan
• Pakistan Rice Export Prices
• Rice Exporters in Pakistan
• IRRI 6 Rice Exporters Pakistan
• Rice Suppliers in Karachi
• Basmati Rice Pakistan
• Broken Rice Exporters

Source: SP Global