Basmati price: Pakistan’s rice export boom ends after India’s move

ISLAMABAD: The period of a massive boost to Pakistan’s rice exports is over after the Indian government’s decision to remove the floor price of Basmati rice and relax restrictions on export of other rice varieties.

Well informed sources told Business Recorder that Pakistan Rice Exporters Association (REAP) has approached the government and shared its concerns on the latest development in the international market after Indian government’s decisions.

Pakistani rice exporters sold Basmati rice at $ 1300 per ton as compared to $ 900 per ton, mainly due to the ban on export of Basmati rice by India and restrictions on other varieties.

India considers easing export curbs on non-basmati rice

According to sources, Pakistani rice exporters have also asked federal government to set a floor price or Minimum Export Price (MEP) at $ 900 per Metric Ton as rice exports will now be on the decline in days to come.

Pakistan’s rice export rose to 619,939.29 MT during the first two months i.e. July-August of 2024-25 against 343,683.19 MT during the corresponding period of FY 2023-24, showing an increase of over 55 per cent.

The exporters earned $ 468.22 million dollars in the first two months of current fiscal year against $ 236.73 million during the same period of FY 2023-24.

Of total quantity of 619,939.29 MT of rice exported in first two months of 2024-25, share of Basmati rice was of 191,033.96 MT against 79,353.01 MT during corresponding period of FY 2023-24. The value of Basmati rice was $ 196.48 million in 2024-25 whereas value of Basmati rice exported during first two months of 2023-24 was $ 95.61 million. Rice was exported to 84 countries including Europe, Central Asia, Gulf States, Far East Asia and Africa.

The quantity of broken rice stood at 89,612.19 MT with a value of $ 44.45 million during this period whereas quantity exported in corresponding period last year was 69,974.39 MT against value of $ 20.33 million. Export of broken rice was made to 32 countries including Canada.

Export of husked (brown) rice stood at 86,760.96 MT against value of $ 75.10 million in July-August 2024-25 while export of brown rice was 38,833.84 MT against value of $ 42.27 million. This variety is being exported to 32 countries.

Other rice varieties exports recorded at 251,800.89 MT in July-August 2024-25 against value of $ 151.80 million whereas it stood at 155,497.41 MT in July-August 2023-24 against value of 78.53 million. These varieties were exported to Afghanistan, South Africa, Djibouti, UAE and Sierra Leone.

Foreign trade provisional data of first two months (July-August) 2024-25 released by Pakistan Bureau of Statistics (PBS) appears to be inexplicable as the quantity of exported rice stood at 340,705 MT, in both financial years. However, the value of exported rice was $ 464,667,000 in July-August 2024 as compared to $ 233,992,000 in July-August 2023.

The export of Basmati stood at 187,016 MT in July-August 2024 against 79,180 MT in same period of 2023-24.

There is variation in export data between the Commerce Ministry and the PBS, which is evident from the available figures. An official, however, explained that there is always a difference in figures of PBS, Customs and State Bank of Pakistan as PBS takes the quantity and price of consignment booked by exporter, customs (FBR) considers the consignment after clearance from customs and sent to customs house for onward shipment and SBP takes exports after receiving proceeds from abroad.

Copyright Business Recorder, 2024