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Pakistan basmati rice exports to USA are gaining momentum after Washington imposed a steep 50pc tariff on Indian basmati rice.
The move, part of the Trump administration’s trade measures against India over its ties with Russia, has reshaped market dynamics in America.
While India faces higher duties, Pakistani rice enters with a lower 19pc tariff, creating a clear pricing advantage.
The tariff on Indian basmati, along with other goods, has driven its US prices to nearly $1,800 per metric tonne.
In comparison, Pakistani basmati sells at around $1,450, making it more attractive to importers and retailers. Analysts expect India’s shipments to drop by 50pc to 80pc, opening the door for Pakistan to expand market share.
Read More: Trump favors Pakistan over India: Bloomberg
Pakistan has seized the opportunity. In FY24, the country exported about 772,725 tonnes of basmati worth $876.9 million, up from 595,120 tonnes worth $650.4 million in the previous year. Average prices also rose, reflecting stronger demand and better returns.
Between November 2023 and October 2024, the US accounted for 24pc of Pakistan’s total basmati exports. Italy followed with 14pc, and the United Kingdom with 11pc. Combined, these three markets consumed nearly half of Pakistan’s aromatic rice exports.
According to the US Department of Agriculture (USDA), US rice imports have risen from 7pc in 1993/94 to over 25pc in 2022/23.
More than 60pc are aromatic varieties from Asia, mainly jasmine from Thailand and basmati from India and Pakistan. With US demand growing, Pakistan’s position in the market looks stronger than ever.
