Pakistan’s rice export sector has shown remarkable resilience in defiance of stiff competition, especially from India, which re-entered the global rice market in October 2024 after relaxing an export ban of almost 2 years.
Despite India offering lower-priced rice, Pakistan has shown the capacity to maintain a constant export volume, reflecting the strength and adaptability of its agricultural economy.
Export performance strong despite global issues
Pakistan exported 5.544 million tons of rice in the 11 months of Fiscal year 2025, a very slight drop of only 0.87% as if compared to the 5.593 million tons exported during the same period last year. This stability is highly remarkable, given that global rice markets have been under severe pressure from price wars and shifting trade dynamics.
While many expected Pakistan to lose ground due to India’s aggressive pricing strategy, the country has held firm, signaling the confidence global buyers have in Pakistani rice quality.
Read more: Pakistan’s rice exports surge 21.78% despite India’s return
India’s Cut-Rate Strategy and Its Fallout
India returned to the rice export market with highly subsidized rates, offering 25% broken non-Basmati rice at $349 per ton — the lowest in the world. This undercut:
• Pakistan at $365 per ton
• Thailand at $376 per ton
• Vietnam at $362 per ton
However, despite the low prices, India’s rice exports dropped 50% year-on-year in April–May 2025. Major factors such as domestic backlash, policy inconsistencies, and the diversion of rice towards ethanol production have played a major role in undermining India’s export endeavors.
Domestic Constraints for Pakistan
Despite a stable overall performance, Pakistan has not been without its challenges. The Kharif 2024 rice crop showed a massive shrinking by 3.7%, tightening domestic stocks. Resultantly, exports in the final quarter of FY25 (April–June 2025) are projected to go down by approximately fifteen percent.
Nonetheless, exporters remain cautiously optimistic. Many are banking on:
• Strict quality control
• Diversified market targeting
• Long-standing trade relationships with premium buyers
These efforts are helping Pakistani exporters retain buyer trust even when competing with cheaper alternatives.
Positive Impacts of Stable Rice Exports
Pakistan’s ability to maintain strong export performance despite market volatility is expected to generate multiple positive impacts across economic and social sectors:
1. Foreign Exchange Earnings
Rice is Pakistan’s second-largest export commodity after textiles. Steady export volumes mean billions in foreign exchange inflows, which are essential for:
• Reducing the trade deficit
• Strengthening the rupee
• Building foreign reserves
2. Employment Generation
The rice sector provides jobs to millions:
• Farmers and field workers
• Millers and processors
• Transport and logistics providers
Continued export demand supports rural livelihoods and stabilizes income in agrarian regions.
3. Market Confidence and Brand Image
Buyers in Europe, the Middle East, and Africa continue to trust Pakistani rice for its:
• Aroma and long-grain quality (especially Basmati)
• Adherence to food safety standards
This enhances Pakistan’s global image as a reliable agricultural exporter.
4. Encouragement for Sustainable Farming
The demand for high-quality rice encourages farmers to adopt better practices:
• Efficient water use
• Reduced pesticide application
• Improved post-harvest handling
These kinds of practices are highly necessary which assist in protecting natural resources and maintaining long-term soil fertility.
5. Regional Economic Development
Export success in rice often leads to the development of:
• Rural infrastructure (roads, storage, irrigation)
• Small and medium enterprises linked to processing and packaging
This can uplift entire regions economically.
Looking Ahead
This remarkable success is more than just a win over price competition. It is depicting Pakistan’s long-term export resilience, strategic market positioning, and unshakable zeal and zest to quality.
Indeed, many challenges remain, such as crop yields and global market pressures, but Pakistan’s rice sector is on a sustainable path — heavily contributing to both economic stability and rural development.