![Pakistan’s rice exports rise by 35% in FY25, driven by quality, aroma, and demand from Far Eastern markets [Representational Image via Profit]](https://pkafgyouthforum.com/wp-content/uploads/2024/12/rice_2.webp)
Commodities experts expect Pakistani rice exports to increase by 10% in the first half of fiscal year 2024-25 due to rising demand for its quality and aroma.
In November 2024, Pakistan’s rice exports grew by 17% in quantity and 5.6% in dollar value compared to November 2023. Non-Basmati rice exports rose to 781,882 tons from 665,851 tons during the same month last year, while Basmati exports surged by 51% during the first five months of the fiscal year, reaching 370,000 tons compared to 244,664 tons in the same period last year.
This performance comes amid stiff competition from India, which lifted its export ban on various rice varieties earlier this year. To boost its exports, India reduced its minimum export price for Basmati rice, devalued its currency by 2.2%, and diverted subsidized rice meant for its Public Distribution System (PDS) to export markets.
Several countries, including the United States and Canada, have lodged complaints with the World Trade Organization against these practices, and authorities are investigating at Indian ports.
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Pakistan Eyes Growth in Far East Rice Markets
In contrast, Pakistan’s rice exports have benefited from growing demand in Far Eastern countries. These include Indonesia, Malaysia, Singapore, and the Philippines. Agricultural shortfalls in these nations, caused by the El Nino weather phenomenon, have driven this demand.
During the first five months of FY25, Pakistan exported rice worth $1.515 billion, marking a 35% increase over the same period last year. In FY24, rice exports totaled $3.9 billion, an increase of 78% year-on-year.
India’s white rice export ban has created new opportunities. As a result, Pakistan has secured substantial orders from Indonesia, the Philippines, and Malaysia. It achieved this by offering competitive prices and superior quality.
Experts predict the Philippines to become the largest rice importer in 2025, positioning Pakistan to capture a significant market share.
Despite these gains, Pakistan’s rice industry faces some challenges. One major issue is Basmati exports. India’s high subsidies on inputs like fertilizers, seeds, and irrigation give it an edge in this market.
This news is sourced from [Profit] and is for informational purposes only.
