Pakistan’s rice exports double in August on higher Far Eastern demand

Pakistan's rice exports surged in August — doubling to 347,059 metric tons (mt) from the same month last year — driven by higher demand from Far Eastern countries and rising commodity prices.

The country's basmati exports during the month climbed to 95,646 mt, up from 46,634 mt in August 2023, according to data released by Pakistan Bureau of Statistics on Monday. Meanwhile non-basmati exports in August were up by 106% to 251,413 mt.

Basmati exports in the first two months of the current fiscal year stood at 187,016 mt compared to 79,180 mt exported in the same period last year. This amounted to earnings of $193 million in July-August compared to $95 million during the same period last year.

Non-basmati exports from the country rose by 65% to 430,045 mt during the period. They fetched $272 million compared to $139 million last year.

Commodity analyst Hamid Malik said global rice prices are likely to fall in the coming months as Indian exporters re-enter the market after their government lifted an export ban.

He said, however, that export volumes would increase due to surplus rice available to export.

Pakistan's rice producers recently urged the government to reduce the floor price for basmati exports after India scrapped its Minimum Export Price.

A floor price is the minimum price that can be paid for a commodity in the market, usually set by governments to ensure that the financial viability of the commodity's producers is not threatened.

Having a higher floor price makes Pakistan's rice exports uncompetitive since producers from other countries are able to offer lower rates to buyers.