Pakistan will export more rice than ever before as a result of Indian restrictions

Pakistan will export more rice than ever before as a result of Indian restrictions

Pakistan will export more rice than ever before as a result of Indian restrictions

The world's largest exporter, India, slapped sanctions last year, which are easing supply constraints. The record shipments will also support Pakistan's declining foreign currency reserves, which are essential for funding imports.

Due to competitor India's decision to reduce its own shipments, Pakistan's rice exports are expected to reach a record high in the year that ends in June, forcing purchasers from Islamabad to purchase more from the city than they have in over 16 years. is charging exorbitant amounts for cereals.

The world's largest exporter, India, slapped sanctions last year, which are easing supply constraints. The record shipments will also support Pakistan's declining foreign currency reserves, which are essential for funding imports.

As a result of India's export ban, there has been a strong demand for rice in recent months, according to Chela Ram Kewalani, head of the Rice Exporters Association of Pakistan (REAP), who spoke to Reuters.

In an unexpected action last year, India, which normally exports nearly 40% of the rice sold worldwide, prohibited shipments of non-Basmati white rice and levied export duties on parboiled rice.

According to Kewalani, Pakistan's exports might rise from 3.7 million metric tons to 5 million metric tons in the 2023–2024 fiscal year.

Even more upbeat are some industry representatives, who predict that if output significantly improves this year, shipments may hit 5.2 million tons.

A worldwide trading firm dealer in New Delhi said that Pakistan would produce 9 to 9.5 million tons of rice in 2023–2024, after floods reduced production to 5.5 million tonnes the previous year.

Pakistan is exporting goods at a quick rate because to increased output and strong worldwide pricing. Pakistan shipped about 700,000 tons of rice in December alone, according to the trader.

According to him, non-Basmati rice exports might rise by 36% to 4.25 million tonnes this year, while exports of Basmati rice could rise by 60% to 950,000 tonnes.

Pakistan's rice exports might bring in more than $3 billion in value this year, up from $2.1 billion the previous year, according to Adil Nakhoda, an assistant professor at the Institute of Business Administration in Karachi.

India has historically charged less for non-Basmati rice than Pakistan does.

Nevertheless, consumers are shifting to Pakistan now that India is out of the market, and local prices are progressively increasing despite huge output, according to Hammad Atiq, director of sales and marketing at Latif Rice Mills, located in Lahore.

Pakistan is now selling parboiled rice for around $680 per tonne and 5% broken white rice for about $640 per tonne, up from $465 and $486 per tonne, respectively, a year earlier.

According to dealers, Pakistan now sells premium Basmati rice to the European Union, Qatar, and Saudi Arabia, and non-Basmati rice mostly to Indonesia, Senegal, Mali, the Ivory Coast, and Kenya.

Pakistan, Vietnam, Thailand, and India are attempting to fill the void left by their absence. Nonetheless, Pakistan has an edge in freight transit due to its closeness to purchasing nations in the Middle East, Europe, and Africa, according to a trader located in Mumbai.

"India could reevaluate export prohibitions after the May elections. About two-thirds of the shipments for the whole year have already been despatched by Pakistani exporters, who should sell the whole amount by the end of May, according to the dealer.

According to Kewalani, Pakistani farmers are receiving record rates for their rice, which will probably motivate them to increase their growing area the next season.

He said, "Pakistan will have an incredible surplus for exportation in the next season also, if the weather cooperates.”