Pakistan has overtaken Vietnam as the world’s second-largest basmati rice exporter, a significant shift driven by a surge in demand and favorable market conditions. This achievement marks a substantial turnaround for Pakistan’s rice industry.
According to data from the Rice Exporters Association of Pakistan (REAP), the country exported 934,824 tonnes of basmati rice worth $766.3 million during the first nine months of the fiscal year 2023-24. Dawn reports this represents a considerable increase compared to the same period last year.
Vietnam, previously holding the second position, exported 823,164 tonnes valued at $630.8 million. India remains the world’s largest basmati exporter, though its market share has been impacted by export restrictions. Reuters detailed India’s export curbs in March 2024.
Several factors contributed to Pakistan’s success. A substantial increase in paddy production, coupled with a weaker rupee against the dollar, made Pakistani basmati more competitive in the international market. The ban on Indian basmati exports to certain countries also created opportunities for Pakistani exporters. The Hindu BusinessLine covered India’s export ban extension.
Exporters anticipate continued growth,but also highlight challenges. Maintaining consistent quality and securing long-term contracts are crucial for sustaining this momentum. Rising input costs, including fertilizer and fuel, pose a threat to profitability. Pakistan Today discussed these challenges in March 2024.
The Rice Exporters Association of Pakistan is actively working with the government to address these issues and further promote basmati rice exports. They are focused on branding Pakistani basmati and exploring new markets to diversify export destinations.
