By Azeem Ahmed Khan

Pakistan’s rice exports fell steeply in both value and volume during the first half of the fiscal year 2025-26, reflecting mounting competitive pressures in global markets and weaker demand across several key destinations, an official document shows.

Total rice export earnings declined 47 percent to $973 million in July-December FY26, down from $1.827 billion in the corresponding period of FY25, according to figures compiled by the Federal Board of Revenue (FBR).

Export volumes also dropped 37 percent to 1.883 million tonnes from 2.969 million tonnes over the same period in FY25.

The downturn follows an already weaker full-year performance in FY25, when total rice exports slipped to $3.282 billion on shipments of 5.693 million tonnes, compared with $3.884 billion and 5.978 million tonnes in FY24.

According to the Ministry of National Food Security and Research, India’s re-entry into the global rice market, exporting 45-50 million tonnes, along with its Free Trade Agreement (FTA) status and a 24 percent subsidy to its rice sector, has significantly affected Pakistan’s competitiveness.

According to the Rice Exporters Association of Pakistan (REAP), Pakistani rice is currently less competitive due to higher prices, which has negatively impacted both export volumes and the national economy.

A breakdown by product shows that non-basmati rice bore the brunt of the decline. Non-basmati export value plunged 51 percent to $683 million in July-December FY26 from $1.398 billion a year earlier, while volumes fell 37 percent to 1.612 million tonnes from 2.560 million tonnes in FY25.

Basmati exports also weakened, with earnings sliding 32 percent to $290 million from $428 million, and volumes dropping 34 percent to 271,367 tonnes from 409,603 tonnes over the same period in FY25.

Region-wise data underline the breadth of the slowdown. Shipments to Africa, Pakistan’s largest market during the period, fell to $326 million and 847,821 tonnes, compared with $564 million and 1.104 million tonnes a year earlier.

Exports to ASEAN countries dropped sharply to $29 million and 77,282 tonnes in value and quantity from $360 million and 686,774 tonnes in FY25.

Sales to Afghanistan declined to $72 million in value and 100,183 tonnes in volume, down from $139 million and 226,487 tonnes previously.

Exports to the European Union eased to $139 million and 128,177 tonnes from $177 million and 181,559 tonnes, while shipments to the United Kingdom fell to $29 million and 27,009 tonnes from $62 million and 69,815 tonnes.

The Middle East, excluding the UAE, recorded exports of $90 million and 104,079 tonnes, down from $190 million and 210,016 tonnes. Deliveries to China slipped in value to $46 million from $56 million, though volumes edged up to 131,602 tonnes from 123,839 tonnes. Central Asian Republics saw export value fall to $87 million from $116 million, even as quantities increased to 169,174 tonnes from 160,448 tonnes.

The United Arab Emirates stood out as a rare bright spot, with export value rising to $84 million from $56 million and volumes jumping to 196,351 tonnes from 71,019 tonnes.

Smaller markets also registered declines, including Canada, South America, SAARC countries excluding Afghanistan, and the United States, underscoring the broad-based nature of the downturn.

Industry officials say the sharp contraction highlights Pakistan’s growing struggle to maintain market share amid intensifying competition, particularly from subsidised Indian exports. With both basmati and non-basmati segments under pressure, exporters warn that sustained price disadvantages could further erode volumes unless competitiveness improves in the months ahead.

Meanwhile, REAP has thanked the government for extending policy support to the sector, citing measures aimed at enhancing export competitiveness and promoting sustainable growth of rice exports.

In a message issued by the association, the industry has expressed appreciation to the government for supporting the rice sector under the Drawback of Local Taxes and Levies (DLTL) scheme.

The support measures include a reduction of R4.04 per kilowatt hour in power tariffs for industries and a decrease in the financing rate for the Export Refinance Scheme. REAP said the initiatives are intended to strengthen export competitiveness and support sustainable growth in rice shipments.

The association said the government’s interventions were aimed at helping exporters navigate rising costs and strengthening Pakistan’s position in international markets, reiterating its commitment to expanding overseas sales under its slogan “Grow More, Export More.”

 
Credit: INP-WealthPk