ISLAMABAD: Pakistan’s rice exports have witnessed a significant surge in the first half of the current financial year, thanks to the bumper crop and strong international demand.
According to data released by the Pakistan Bureau of Statistics (PBS), during the period – July to December of fiscal year 2023-24, the country’s rice exports soared by over 76%, reaching a value of $1.63billion, compared to $927 million during the same period in 2022.
This remarkable increase reflects a growth of 76.5%, surpassing expectations and indicating a robust performance in the rice export sector.
Optimism about a further surge in exports
Exporters are optimistic that the overall export of rice could reach a historic $3.5 billion, fueled by the current surge in various rice varieties. The export figures include 2,570,727 metric tons (MT) of rice, compared to 1,732,884 MT during the same period in 2022, indicating a substantial 48.35% increase. Basmati rice, renowned for its superior quality, accounted for 318,284 MT, while other rice varieties comprised 2,252,442 MT.
The rice sector holds significant importance in Pakistan, contributing 3.0% to agriculture’s value added and 0.6% to GDP, making it the second main staple food crop after wheat. However, the surge in exports has also raised concerns about potential domestic impacts, particularly in terms of price fluctuations and inflation.
Indian rice export ban
The ban on Indian rice exports has proven beneficial for Pakistani exporters, as buyers from Africa and the Far East have shifted their preferences to the Pakistani market. This shift has created opportunities for Pakistani exporters to capitalize on the market, potentially leading to competitive pricing and increased demand. However, the surge in non-basmati rice exports may lead to local price hikes, potentially affecting other staple crops and contributing to overall food inflation.
Balancing the immediate economic gains from increased exports against the short-term inflationary impacts is a delicate challenge for policymakers. The caretaker government must carefully navigate this balance while ensuring the nation’s food security and foreign exchange reserves. While the surge in exports is a positive development, it’s essential to monitor and address potential inflationary pressures and the impact on domestic food prices. This delicate balancing act is crucial for sustaining economic growth while safeguarding the well-being of the population.
