Pakistan’s rice exports declined by 28% in the first quarter of fiscal year 2026, raising concerns about the industry’s competitiveness amid ongoing policy and regulatory challenges.
Official data shows that total rice exports fell to 712,797 tons, compared to 991,146 tons during the same period last year.
The sharpest decline was seen in Basmati rice exports, which plunged 45.5% to 137,066 tons, while non-Basmati rice exports dropped 22.1% to 575,731 tons, down from 764,700 tons a year earlier.
Experts attribute the decline to a combination of financial, exchange rate, and administrative factors that have made Pakistani rice less competitive internationally, especially against Indian rice.
According to rice analyst, the State Bank of Pakistan’s export financing policy has made credit around 600 basis points more expensive than in India. He added that the managed appreciation of the rupee—rising from Rs284.70 to Rs280.85 per dollar during the harvest season, further inflated export prices.
In contrast, the Reserve Bank of India allows a gradual depreciation of the rupee during harvest, giving Indian exporters a pricing advantage.
Exporters also criticized the shift from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), saying it has reduced profit margins. Additionally, inconsistent enforcement of phytosanitary standards and alleged harassment by the FIA have further hindered trade.
A representative of the Rice Exporters Association of Pakistan (REAP) said India’s recent decisions to lift its export ban, remove the minimum export price (MEP) for Basmati, and zero-rate exports have tilted regional competition in India’s favor.
