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Pakistan's Rice Exports Plunge 35% Despite Govt Subsidies

Pakistan's rice exports dropped by over 35% in February despite government subsidy programs intended to support the sector. Exporters say the subsidies pushed up domestic prices, making Pakistani rice less competitive in international markets. Official data shows sharp declines in both basmati and coarse rice exports by value and volume. Industry participants argue that sustainable growth requires farm-level reforms and a shift towards value-added products, not just export-stage subsidies.

Key Points: Pakistan Rice Exports Slump 35% in February

  • Exports fell 35% despite subsidies
  • Domestic prices rose, hurting competitiveness
  • Basmati & coarse rice volumes both declined
  • Exporters call for farm-level reforms
2 min read

Pakistan's rice exports slump over 35 pc in Feb: Report

Pakistan's rice exports fell over 35% in Feb despite subsidies. Report cites high domestic prices, hoarding, and lack of value-added products.

"Our rice exporters have remained largely commodity traders over the past four decades - Industry Exporter"

New Delhi, March 20

Pakistan's rice exports declined by over 35 per cent in February despite government subsidies, raising concerns over the effectiveness of the support measures, according to a report.

According to the report in Dawn, exporters said the subsidy programme had pushed up domestic prices, making Pakistani rice less competitive in global markets and undermining the intended benefits.

However, official data from the Pakistan Bureau of Statistics showed that basmati rice exports fell 19.21 per cent in value and 27.98 per cent in quantity in February.

In addition, coarse rice exports also declined sharply, dropping 42.50 per cent in value and 32.94 per cent in volume during the same period.

The Pakistani government had announced a 3 per cent duty drawback on local taxes and levies for coarse rice and 9 per cent for basmati exports, with an allocation of around Rs 15 billion to support exporters.

Exporters said the decline was driven by higher domestic prices and hoarding, which weakened Pakistan's competitiveness in international markets. They also noted that the sector has remained largely focused on commodity trading, with limited progress in developing value-added products.

"Our rice exporters have remained largely commodity traders over the past four decades, focusing primarily on meeting export refinance facility performance (ERF) targets rather than developing into efficient exporters like their counterparts in the region," an exporter was quoted as saying.

Industry participants further said that rebates offered under the duty drawback scheme are insufficient to offset structural challenges at the farm level.

They emphasised that sustainable export growth depends on improving agricultural productivity, lowering input costs and enhancing supply chain efficiency.

According to exporters, measures such as better seed quality, efficient irrigation and reduced fertiliser and energy costs are critical to boosting competitiveness. Without such reforms, subsidies at the export stage are likely to have only a limited impact.

They also called for a policy shift to redirect incentives towards value-added rice products and byproducts to strengthen export performance over the long term.

- IANS

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Reader Comments

P
Priya S
A 35% drop is huge! The report says the subsidy backfired by raising local prices. It's a classic case of good intentions gone wrong. Our farmers in Punjab and Haryana would understand this pressure. Exporters need to think beyond just meeting targets and actually build a quality brand. 🇮🇳
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Aman W
From a purely economic perspective, this is an interesting case study. The duty drawback scheme failed to address core issues like hoarding and high input costs. Sustainable growth needs investment in agriculture, not just export-stage sops. Other rice-exporting nations should take note.
S
Sarah B
While the decline impacts their economy, one hopes this leads to positive policy changes that benefit their farmers and stabilize the regional market. A strong agricultural neighbor is better for trade. The call for value-added products is spot on.
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Vikram M
Basmati and coarse rice both down sharply. This isn't just a bad month; it's a structural issue. They've been "commodity traders" for 40 years, the exporter said. Meanwhile, Indian basmati has built a brand. Competition is good, but it requires vision and investment in the supply chain.
K
Kriti O
Feel for the farmers there. When policies fail, it's the small growers who suffer most. Hoarding by middlemen is a curse everywhere. Hope they implement the suggested reforms—better seeds, efficient irrigation. It's the only way. 🙏

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