July 20, 2024 (MLN): Pakistan’s rice exports jumped significantly by 74.8% year-over-year to a record $3.68 billion during the fiscal year 2023-24, driven by India’s export restrictions throughout the period.
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That compares with exports worth $2.11bn in the previous year and average yearly exports of $2.31bn over the past five years, according to the State Bank of Pakistan (SBP) data released on Friday.
India, the world’s biggest rice exporter, had imposed various curbs on exports in 2023 and continued them in 2024 to keep local prices in check ahead of the general elections held in April-May.
Pakistan was the biggest beneficiary of this, exporting a record amount of rice this year due to New Delhi’s export curbs.
Pakistan’s total goods exports during FY24 stood at $31.09bn, up 11.5% compared to $27.88bn in FY23.
The food group was the second-largest contributing group to total exports, with a total export value of $7.08bn, up 49.5% YoY. This growth was largely driven by the increase in rice exports.
To note, India is now likely to ease export curbs by cutting the floor price for basmati rice exports and replace the 20% export tax on parboiled rice with a fixed duty on overseas shipments, Reuters reported earlier, citing government sources.
This would help India retain its market share against Pakistan.
The government was examining possibilities of easing rice export curb, including resuming white rice exports, Reuters reported last month.
Worried over expectations of lower output due to the El Nino weather pattern, India banned overseas shipments of non-basmati white rice varieties in July 2023 and imposed curbs on other grades.
“With rice supplies significantly exceeding local demand, it’s crucial to reduce stockpiles to prevent spoilage. The most effective solution is to lift export restrictions,” said B.V. Krishna Rao, president of the Rice Exporters Association (REA).
The country’s rice stocks at state warehouses have jumped to 48.51 million metric tons as of July 01, the highest ever for the month and nearly 19% more than last year, according to the Food Corporation of India.
New Delhi would also review the export ban on non-basmati white rice after assessing the progress of rice planting, Reuters reported sources as saying.
Farmers have so far planted 11.6m hectares with rice paddy during the current planting, up 20.7% on the same period last year.
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