Rice exports likely to hit a record high of over $3.5 billion this year driven by a bumper crop and strong international demand. Pakistan’s rice exports surged by over 76 percent in the first half of this fiscal year, exceeding expectations. According to data released by the Pakistan Bureau of Statistics (PBS), the country exported $1.63bn worth of rice during July-December 2023, up significantly from $927m during the same period in 2022, registering a growth of 76.5 percent.
Export market analysis
Pakistan currently exports $1.4 billion worth of rice to the world, while total global rice imports are $19.2 billion. Semi-milled and milled rice in particular represent a significant opportunity for additional exports worth $715.3 million. Geographically, demand for rice is fragmented, with major importers in Asia, the Middle East and Africa. China stands out as a major importer, accounting for a quarter of total trade, and demand for rice is growing in African countries such as Nigeria. The global rice trade revolves around two main products: fragrant rice and unscented rice. Basmati rice, which is in high demand in the European Union and the Middle East, is mainly produced and exported by India and Pakistan.
Impact of the Indian export ban
The ban on Indian exports proved beneficial for Pakistan exporters. For Pakistan, which has a 40 percent market share, the ban on the export of all rice except high quality basmati is a golden opportunity. Buyers from Africa and the Far East, who previously purchased Indian rice, have shifted their preferences to the Pakistani market.
Exporters expect this trend to continue until India’s export policy is relaxed.