Policymakers express concern as Pakistani rice loses competitiveness against India in international markets
ISLAMABAD: Pakistan’s rice sector is under pressure as exports declined sharply during the first half of the current fiscal year, coinciding with a nearly 50 percent drop in global rice prices, officials told the National Assembly Standing Committee on Commerce.
During a briefing, officials reported a significant fall in both the volume and value of rice shipments between July and December. Committee member Javed Hanif noted that rice exporters had received Rs15 billion from the Export Development Fund (EDF), but questioned the timing of approvals, which were granted just before a new EDF board took charge. Hanif called for greater transparency in fund disbursement, noting that export performance had already weakened.
Officials cited multiple factors behind the downturn, including a surge in global rice production and India’s return to international markets after a temporary export halt in 2023-24. The price gap between Pakistani and Indian rice has widened to around $20 per unit, reducing Pakistan’s competitiveness in key importing regions.
Despite the slowdown, Pakistan holds rice stocks valued at approximately $2 billion, with domestic speculators from the real estate sector reportedly investing in inventories. Exports to Iran continue for both basmati and non-basmati varieties, though regional trade restrictions and payment issues remain challenging.
The EDF relief package aims to support rice exporters facing global headwinds, similar to past assistance extended to Pakistan’s textile sector.
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