ISLAMABAD: Pakistan’s rice export earnings fell 40.5% to $1.31 billion in the first seven months of the 2025-26 fiscal year, according to external trade data compiled by the Pakistan Bureau of Statistics, as the country faced a sharper price squeeze in a global market shaped by heavier competition. Rice is a major part of Pakistan’s food export basket, and the slide in receipts came alongside a broad drop in overseas sales of several food items during the July to January period.
In volume terms, Pakistan exported 2.439 million metric tons of rice during July to January, down from 3.637 million tons a year earlier, the data showed. Export value for the same period fell from $2.194 billion, indicating that the downturn reflected both fewer shipments and lower realized prices. The trade figures cover the first seven months of Pakistan’s fiscal year, which begins in July, and represent one of the steepest commodity-specific contractions in the latest export release.
Non-basmati rice accounted for the largest share of the decline. The data showed non-basmati export value dropped 50.8% to $827.8 million, while volumes fell to 2.0 million tons from 3.15 million tons in the previous year’s comparable period. Basmati export value declined 6.62% to $477.7 million, and volumes eased to 436,484 tons from 487,278 tons. The combined setback reduced overall export receipts by roughly $889 million year on year in the July to January window.
India volumes surge after curbs lifted
India’s rice shipments rose sharply in 2025, strengthening its position in global trade. Government and industry figures from India showed total rice exports increased 19.4% last year to 21.55 million metric tons, the second-highest annual volume on record. Non-basmati exports climbed 25% to 15.15 million tons, while basmati exports rose 8% to a record 6.4 million tons. The increase followed the removal of export restrictions introduced during 2022 and 2023 and eased further through 2024.
Policy changes in 2024 helped expand the tradable supply from India. In late September 2024, India permitted exports of non-basmati white rice and set a floor price, while also cutting export duty on parboiled rice. In October 2024, India removed the floor price for non-basmati white rice exports and scrapped the export tax on parboiled rice. Broader Asian price benchmarks reflected weaker levels by early 2026, with Thai 5% broken rice priced at about $408 per ton in February.
Subsidies and revised rules underscore strain
Pakistan has relied on support measures tied to export proceeds and declared prices. A Ministry of Commerce notification dated Jan. 23, 2026 introduced a drawback of local taxes and levies for rice exports shipped on or after that date and ending June 30, 2026, subject to full realization of export proceeds under applicable central bank regulations. Under the order, exporters of basmati and brown rice are eligible for a 9% drawback on free-on-board value when the declared export price is $750 per metric ton or higher, while specified coarse categories qualify for 3% when priced below $750.
The government has allocated about 15 billion rupees for the subsidy framework, and a subsequent notification dated Feb. 18 removed a $1,275-per-ton ceiling that had been used for calculating benefits under the scheme. In the wider trade picture, Pakistan’s food group exports fell 35.29% to about $2.989 billion during July to January, compared with the same period a year earlier. With India’s shipments higher across both non-basmati and basmati categories in 2025, Pakistan’s export figures show a deeper contraction in rice receipts and volumes over the latest seven-month reporting period. – By Content Syndication Services.