Advertisement
News

India’s Basmati Exports to Drop as Pakistan Offers Competitive Prices

Advertisement

Industry officials predict a potential decline in India’s basmati rice exports for 2024, following a trajectory that nearly reached a record high last year, attributed to Pakistan’s competitive pricing amidst a resurgence in production.

Renowned as the leading exporters of the premium long-grain variety of rice globally, both India and Pakistan cater to markets like Iran, Iraq, Yemen, Saudi Arabia, the United Arab Emirates, and the United States.In 2023, India witnessed an 11.5% surge in basmati rice exports compared to the previous year, reaching 4.9 million metric tons, inching close to the record peak of 5 million tons achieved in 2020. This upswing was fueled by reduced supplies from Pakistan and stocking endeavors by importing nations, according to industry insiders.

The surge in basmati rice shipments contributed to India’s attainment of a record $5.4 billion in exports in 2023, marking a substantial increase of nearly 21% from the preceding year, driven by elevated prices, as indicated by government data.Vijay Setia, a prominent exporter from Haryana state, remarked, “Last year, buyers rushed to procure when Pakistan faced production challenges. However, this year, Pakistan’s competitive prices, buoyed by increased production, have shifted the dynamic.”

Chela Ram Kewlani, chairman of the Rice Exporters Association of Pakistan (REAP), projected a potential surge in Pakistan’s total rice exports to 5 million tons in the 2023/24 financial year, up from the previous year’s 3.7 million tons.

The devaluation of the Pakistani rupee has bolstered the competitiveness of Pakistan’s exports, noted Akshay Gupta, head of bulk exports at KRBL Ltd (KRBL.NS).

Concurrently, a decline in export demand coupled with an estimated 10% rise in India’s basmati rice production has commenced a downward trend in basmati prices within India, Gupta further elaborated.

Despite a 36% reduction in purchases by Iran, India managed to offset the decline with increased shipments to Iraq, Oman, Qatar, and Saudi Arabia, according to data compiled by India’s Ministry of Commerce and Industry.

Although Indian exports faced a brief slowdown in September and October due to the imposition of a minimum export price (MEP) on basmati rice, they swiftly rebounded, according to a New Delhi-based exporter.

Advertisement
Zubair Yaqoob

Zubair Yaqoob is a senior anchor, and an investigative journalist with an impressive 37 years of experience. Zubair's journalistic journey has been marked by a relentless pursuit of truth and a commitment to delivering impactful stories. Zubair's expertise extends beyond borders, reaching as far as Malaysia, where he has left an indelible mark on the international journalism landscape. His global perspective and keen analytical skills have allowed him to navigate diverse cultural landscapes, bringing a unique and enriching perspective to his reporting. Whether he's in the studio or on the field, Zubair continues to be a driving force in the world of journalism, bridging gaps, fostering understanding, and unraveling the stories that matter most. As the Headline PK Author, Zubair remains at the forefront of news, guiding audiences through the complexities of our ever-evolving world.

Recent Posts

BYD Reports Record-Breaking Revenue of RMB 777.1 billion in 2024

BYD released its 2024 financial report, with key indicators reaching record highs! The company achieved…

2 days ago

Eid in Dubai: All You Need to Know

Eid in Dubai is a time of joy, celebration, and togetherness, bringing a unique blend…

2 days ago

Bangladesh Deputy High Commission in Karachi Observes its National Day, Promotes Bilateral Ties

Bangladesh and Pakistan have been working for wider and stronger bilateral ties between the countries.…

2 days ago

Bank Alfalah introduces Pakistan’s First E-Commerce Shopping Platform AlfaMall on WhatsApp

Bank Alfalah, one of Pakistan’s leading commercial banks, has introduced AlfaMall on WhatsApp, bringing a…

2 days ago

K-Electric Reports Strong Industrial Uptake of Winter Demand Initiative

K-Electric (KE) has witnessed a positive industrial response to the Prime Minister’s Winter Demand Initiative,…

2 days ago

Karachi: Couple Killed in Tragic Hit-and-Run on Karsaz Road

Karachi witnessed yet another devastating road accident as a speeding car struck a motorcycle on…

3 days ago