Pakistan's rice exports rise 76% in July
Trader attributes jump to exporters exploring new markets
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
A crane lifts off cargo sacks from a truck to a ship at a seaport terminal
Shutterstock
Pakistan's rice exports maintained their upward trend in the first month of the new fiscal year, rising by 76% to 274,004 metric tons (mt), data released by the Pakistan Bureau of Statistics (PBS) on Thursday showed.
Pakistan basmati exports rose to 91,303 mt in July compared to 32,546 mt in the same month of the preceding year. Meanwhile, non-basmati rice exports rose to 178,617 mt compared to 139,756 mt in July 2023.
Foreign exchange earnings fetched through export of basmati rice were around $93 million, up by 135% from July 2023, while non-basmati export earnings were up by 46% to $113 million.
A leading trader told Nukta that export profits rose because of higher prices and exploration of new markets by Pakistani exporters.
However, commodities expert Hammad Malik highlighted major concerns, which include "high ocean freight, dwindling basmati stocks at fag-end of the crop year in Pakistan (Sep to August) and stiff competition from India due to its currency devaluation".
Reduction in global price might also hurt rice shipments, if the trend sustained, he added.
However, basmati exports declined by 4% and non-basmati by 48% on a month-on-month basis, with shipments recorded at 94,895 mt and 338,844 mt, respectively.
FY24 exports
Pakistan's rice exports touched an all-time high of 6.018 million mt in fiscal year 2023-2024 owing to bumper output and higher global rice price. The exports were up 62% year-on-year, according to PBS data.
Foreign exchange earnings through rice exports in FY24 were up 83% at $3.9 billion, the data showed.
Chela Ram Kewlani, chairman of the Rice Exporters Association of Pakistan, said the country has achieved a new milestone as several new markets were tapped.
"Our exporters entered Malaysia, Indonesia and Vietnam offering good quality long grain rice, which has received tremendous response, both in volume and value," Kewlani said.
Pakistan has received several good orders because of the prevailing ban on rice exports in India.
"We are hearing that soon, the ban will be lifted as Pakistan and other exporting countries have received good price for their commodity," Kewlani said.
Comments
See what people are discussing