ISLAMABAD: A recent meeting of the National Assembly’s Standing Committee on Commerce shed light on a significant decline in Pakistan’s rice exports during the first half of the current financial year, with a dramatic reduction in global rice prices.
According to the committee, rice exports from Pakistan have dropped substantially, and the global market price for rice has halved.
Javed Hanif, a member of the committee, raised concerns over the distribution of 15 billion rupees from the Export Development Fund (EDF) to rice exporters. He questioned the timing of this disbursement, particularly since it occurred just days before the establishment of a new board.
During the meeting, committee members were informed that both the quantity and price of Pakistani rice had decreased by almost 50%. This drop comes at a time when global rice production has increased, with India, which had previously suspended rice exports for the 2023-2024 period, resuming its shipments. This resumption by India has further impacted global rice prices, creating a $20 price gap between Pakistani and Indian rice in the international market.
Government officials confirmed that Pakistan currently holds rice stocks worth approximately $2 billion. Additionally, it was revealed that some investors in the real estate sector have used their funds to purchase and stockpile rice, which has added to the pressure on the market.
The committee also discovered that in Iran, Pakistani Basmati rice was being sold as non-Basmati, potentially damaging the reputation of Pakistan’s rice in international markets.
To support the struggling rice export sector, the government has provided financial assistance to exporters, though this is the first time EDF funds have been allocated to the rice sector. In previous years, similar financial support had been provided to the textile sector, raising questions about the consistency of the government’s support across different industries.
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