Pakistan rice exports grow steadily despite stiff competition from other countries

Pakistan rice exports recorded steady growth during the seven months of the current fiscal year despite a drop in global commodity prices and stiff competition from Vietnam and India.

Rice exports during fiscal year 2024-25 (FY25) are expected to cross six million metric tons (MT), exporters told Nukta.

Basmati exports rose 22% to 487,221 MT during July-January compared with 399,234 MT during the same period last year, according to the Pakistan Bureau of Statistics, the state-run authority which compiles data related to imports and exports.

Non-basmati exports rose 7.7% to 3.149 million MT compared with 2.924 million MT during the same period in the corresponding year, the data said.

Hamid Malik, an agriculture expert, told Nukta that growth in seven months has been quite encouraging and it appears that exports of six million MT achieved in FY24 would be crossed comfortably.

Pakistan's rice exports faced stiff competition because of devaluation in Indian, Vietnam and Myanmar currencies but growth was still prominent. “Basmati exports in the last financial year were around 775,000 MT, which appears to be achievable this year because in seven months, shipments amounted to nearly 500,000 MT,” Malik said.

Exploring new markets

Since FY24, Pakistan has explored new markets, making further inroads and strengthening its foothold. In January alone, exports of rice to Indonesia amounted to 66,900 MT, Madagascar 48,550 MT, Afghanistan 47,113 MT, Malaysia 37,156 MT, UAE 22,706 MT, and Saudi Arabia 20,915 MT, according to Malik.

Malik further said exporters have been making efforts to increase the number of buyers in Bangladesh, Philippines, Malaysia, Iran, the European Union, and the United Kingdom which would boost earnings through the rice segment in the next three months.

In December, Malik Faisal Jahangir, chairman of the Rice Exporters Association of Pakistan, told Nukta there appeared to be a promising year ahead for rice shipments, targeting $5 billion for the next fiscal year. A comprehensive strategy will focus on modern seed research and promoting agricultural practices to boost exports further.

The government has set an ambitious target of increasing annual rice exports to $10 billion by 2030, a more than two-fold increase from the current $4 billion. “To achieve this, the focus will be on improving quality assurance and brand management globally. With the right conditions and support, Pakistan's rice exporters are poised for a record-breaking year,” Jahangir said.

The rationale behind setting the latest target for Pakistan's rice exports is to capitalize on the country's potential for increased rice production and export earnings. This ambitious target is driven by the introduction of high-yielding hybrid rice varieties and improved quality control measures, the chairman added.

Pakistan's rice exports showed a significant increase in FY24. According to the Rice Exporters Association of Pakistan, total rice exports for the year reached 6.010 million MT, valued at $3.931 billion.

In comparison, total rice exports for the year FY23 were 3.717 million MT, valued at approximately $2.149 billion. This represents an increase of 61.5% in quantity and 83.5% in value compared to the previous year.