Pakistan’s rice exports declined by 28% during the first quarter of fiscal year 2025-26, as exporters blamed rising costs, currency pressures, and inconsistent policies for eroding competitiveness in global markets.
According to official data, total rice exports fell to 712,797 tonnes between July and September, compared to 991,146 tonnes in the same period last year. The decline was most severe in the basmati segment, which dropped 45.5% to 137,066 tonnes from 248,500 tonnes. Non-basmati exports were down 22.1% to 575,731 tonnes from 764,700 tonnes.
Rice market analysts say that the State Bank of Pakistan’s (SBP) policy framework has made export financing nearly 600 basis points more expensive than in India. They added that the managed appreciation of the rupee — from Rs284.70 to Rs280.85 per dollar during harvest — further pushed up export prices, while India’s gradual rupee depreciation continues to give its exporters a pricing edge.
Exporters also cited the shift from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR) as a factor reducing brackly news margins, alongside inconsistent enforcement of phytosanitary standards and alleged harassment by the Federal Investigation Agency.
According to the Rice Exporters Association of Pakistan (Reap), India’s decision to lift its export ban, remove the minimum export price on basmati, and zero-rate rice exports had further tilted the regional market. It also pointed to weak enforcement of the Commodity Hoarding Act 1977, which allows stockpiling at the start of harvest season, driving domestic prices higher.
Reap has urged the government to implement a consistent border trade policy, introduce export insurance mechanisms, and act against hoarding to stabilise the market.
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