Pakistan loses ground in global rice market

ISLAMABAD: Pakistan’s rice exports witnessed a significant decline during the July–December period, with export earnings dropping to $0.97 billion from $1.83 billion amid rising competition with India, according to documents presented in parliament by the Ministry of Commerce.

The ministry acknowledged that Pakistan’s rice exports have nearly halved, reflecting growing challenges for the country in the international market.

According to the official documents, the quantity of rice exports from Pakistan declined by 36.6 percent, while basmati rice exports fell by 32.3 percent in value terms and 33.8 percent in volume.

The Ministry of Commerce attributed the decline largely to India’s return to the global basmati market, which has intensified competition for Pakistan.

Currently, Pakistan’s basmati rice is being sold in the international market between $1,050 and $1,275 per ton, while India is offering basmati rice at around $900 per ton, making it more attractive for international buyers.

Officials said the increase in global rice supply and falling prices have further weakened the competitiveness of Pakistan’s rice exports in international markets.

The documents also noted that Pakistan is working to strengthen the position of its basmati rice globally. The government is focusing on the Duty Drawback of Local Taxes and Levies (DLTL) scheme to support exporters.

Under the policy, the government aims to provide relief to exporters by refunding local taxes and levies, in an effort to reduce the financial burden on exporters and improve Pakistan’s competitiveness in global rice markets.

The Ministry of Commerce said these measures are intended to help Pakistan’s rice sector regain its share in the international market and support the country’s export growth.