Pakistan’s rice exports recorded a massive decline during the first half of the fiscal year, raising serious concerns among exporters and policymakers about the country’s competitiveness in global markets.
According to the Rice Exporters Association of Pakistan, overall rice exports dropped by 68.52 percent during the period from July to December 2025, reflecting a sharp contraction in foreign demand.
The decline was even more severe in Basmati rice exports, which fell by 93.21 percent during the same period, highlighting structural and pricing challenges faced by Pakistan’s premium rice segment.
The exporters association, however, welcomed the recent measures taken by the Ministry of Commerce to revive exports, particularly the decision to reduce duty on Basmati rice by nine percent.
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The association further revealed that exporters dealing in other varieties of rice will also receive a three percent duty reduction, aimed at supporting the broader rice export industry.
According to the exporters, the duty reduction will help Pakistani rice prices compete more effectively with Indian rice in international markets, where price competition remains intense.
The Rice Exporters Association stated that the new concessions will come into force from January 23, 2026, and will remain valid until June 30, 2026, providing temporary relief to exporters.
The Ministry of Commerce has already issued an official notification regarding the revised duty drawback and levies, formalising the government’s support package for the rice sector.
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Chairman of the Rice Exporters Association, Malik Faisal, praised the government’s decision, calling it a historic step. He said it was the first time in Pakistan’s history that such direct concessions were offered to rice exporters.
He expressed confidence that the government’s incentives would help restore momentum in rice exports and promised that exports could reach $1.5 billion by June 2026 if supportive policies continue.
On the other hand, India’s rice exports surged by 19.4 percent during the same period, reaching the second-highest level ever recorded, following the removal of all export restrictions by New Delhi.
According to Indian government and industry officials speaking to international media, this move made Indian shipments more competitive.
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The increased supply from the world’s largest rice exporter reduced shipments from competitors like Thailand and Vietnam, driving Asian rice prices to their lowest in nearly a decade.
This price drop has helped lower food costs for vulnerable consumers in Africa and other regions.
