Pakistan’s rice exports surge 74.8% to record $3.68 billion in FY24

Pakistan’s rice exports soared by 74.8 per cent year-on-year, reaching a record $3.68 billion in the fiscal year 2023-24, according to data from the State Bank of Pakistan (SBP) released on Friday.

This significant increase was attributed to India’s stringent export restrictions during the same period.

In comparison, Pakistan’s rice exports stood at $2.11 billion in the previous fiscal year, with an average of $2.31 billion annually over the past five years.

India’s measures to curb rice exports in 2023, which continued into 2024 to stabilise domestic prices ahead of the general elections in April-May, played a crucial role in this surge.

As a result of New Delhi’s export limitations, Pakistan emerged as the primary beneficiary, achieving record rice exports this year. Overall, Pakistan’s total goods exports for FY24 reached $31.09 billion, marking an 11.5 per cent increase from $27.88 billion in FY23.

The food sector, notably rice, was the second-largest contributor to total exports, with the food group’s export value rising by 49.5 per cent year-on-year to $7.08 billion.

India is now considering easing its export restrictions, which may include lowering the floor price for basmati rice exports and replacing the 20 per cent export tax on parboiled rice with a fixed duty, according to government sources cited by Reuters. This adjustment aims to help India maintain its market share against Pakistan.

India initially banned non-basmati white rice exports in July 2023 due to concerns over reduced output from the El Niño weather pattern and imposed restrictions on other rice grades.

“With rice supplies significantly exceeding local demand, it’s crucial to reduce stockpiles to prevent spoilage. The most effective solution is to lift export restrictions,” stated B.V. Krishna Rao, president of the Rice Exporters Association (REA).

As of July 1, India’s rice stocks at state warehouses reached an all-time high of 48.51 million metric tons, nearly 19 per cent more than the previous year, according to the Food Corporation of India.

Additionally, the Indian government is reviewing the export ban on non-basmati white rice after assessing the progress of rice planting, with farmers having planted 11.6 million hectares of rice paddy so far this season, up 20.7 per cent from the same period last year.