In a recent move to boost domestic supply and stabilize retail prices during the festive season, the Indian government imposed a ban on the export of non-basmati white rice to the international market. This restriction has inadvertently led to a surge in demand for rice from Pakistan, benefiting the rice exporters of the neighboring country.
The ban on non-basmati white rice exports, which came into effect on July 20, affects approximately 25 percent of India’s total rice exports. As a result, international buyers are now turning to Pakistani exporters to fulfill their rice requirements.
According to Chela Ram Kewlani, the Chairman of Pakistan Rice Exporters Association, the ban has triggered a significant increase in export orders for Pakistani rice. He stated, “There is a big demand for Pakistani rice in the global market after India placed restrictions on the export of non-basmati rice. International buyers are now turning towards Pakistani exporters.”
This demand surge has been a boon for Pakistan’s rice industry, with expectations of surpassing USD 3 billion worth of rice exports this year. Additionally, the price of basmati rice has seen a notable rise, increasing by USD 100 per ton. Prior to the ban, Pakistani non-basmati rice was priced at USD 450 per ton in the international market, but it has now escalated to USD 500 per ton, with potential to reach USD 600 per ton based on quality.
Various regions have shown strong interest in procuring rice from Pakistan. The United States, the United Kingdom, and other European countries have displayed increased demand. Furthermore, Russia has expressed keen interest in acquiring 5 million tonnes of rice from Pakistan, while negotiations with 27 Russian companies are already underway for the export of non-basmati rice. Similarly, talks are progressing with Mexico for the acquisition of Pakistani rice.
The ban on Indian non-basmati white rice has created a favorable situation for Pakistani exporters, who are seizing the opportunity to meet the heightened global demand. Previously, Indian non-basmati white rice held a prominent position in the international market, contributing to the surge in demand for Pakistani rice.
As the rice trade between India and Pakistan undergoes this shift, it is essential for both countries to closely monitor the impacts on their respective economies and agricultural sectors. While the ban has opened new doors for Pakistan’s rice export industry, it may have implications for India’s rice farmers and exporters of other rice varieties.
