Rice exports of Pakistan have decreased by 40.5 percent, amounting to $1.31 billion during the initial seven months of the fiscal year.
The decline in rice exports of Pakistan is attributed to India’s re-entry into the global market, which has negatively affected Islamabad’s market share and pricing capabilities.
As per the Pakistan Bureau of Statistics (PBS), non-Basmati rice exports plummeted by 50.8 percent to $827.8 million, with export volumes dropping to 2.0 million tons from 3.15 million tons in the previous year.
Meanwhile, Basmati rice exports saw a reduction of 6.62 percent, totaling $477.7 million, with volumes decreasing to 436,484 tons from 487,278 tons.
India’s rice industry re-enters global markets
The Ministry of National Food Security informed a parliamentary committee during two separate meetings held in December and January.
The meetings concluded that India’s return to the global rice market significantly contributed to this downturn, noting that the increase in Indian supplies has rendered Pakistani rice less competitive.
Officials conveyed to lawmakers that India enjoys advantages from free trade agreements and provides considerable support to its rice industry, thereby exerting further pressure on Pakistani exporters.
In response to these challenges, the Ministry of Commerce issued a notification last month under the “Drawback of Local Taxes and Levies for Rice Order, 2026,” which permits a rebate of 9 percent on the free-on-board (FOB) value for Basmati exports priced above $750 per metric ton.
Earlier, the government stated that this initiative, announced on January 23, is intended to improve liquidity constraints faced by exporters and improve Pakistan’s economy.
