Pakistan’s basmati rice exports have continued to grow steadily in recent years. Data from the Rice Exporters Association of Pakistan (REAP) shows that in FY24, the country exported around 772,725 tonnes of basmati rice, earning $876.9 million. This marks a notable increase from the 595,120 tonnes exported in the previous fiscal year, which generated $650.4 million.
WASHINGTON – A 50% tariff imposed by the Trump administration on Indian goods including basmati rice which has reshaped rice trade dynamics in the United States, offering Pakistan a valuable opportunity to expand its market share in the aromatic rice segment.
Pakistan’s basmati rice exports have been on a steady upward trajectory. According to the Rice Exporters Association of Pakistan (REAP), the country exported around 772,725 tonnes of basmati rice in FY24, earning $876.9 million. This marks a significant rise from 595,120 tonnes worth $650.4 million the previous year. The average export price per tonne also rose from $1,092.93 to $1,134.86.
Data from Volza’s Global Trade platform indicates that between November 2023 and October 2024, the United States accounted for 24% of Pakistan’s total basmati rice exports, with 1,519 shipments. Italy and the UK followed with 14% (908 shipments) and 11% (716 shipments), respectively. Combined, these three markets absorbed nearly half of Pakistan’s global basmati exports.
Currently, Pakistan exports basmati rice to over 110 countries, with other major markets including Australia, Saudi Arabia, the UAE, Canada, the Netherlands, and Germany.
According to the US Department of Agriculture (USDA), rice imports in the US have steadily increased — from 7% of the domestic market in 1993/94 to over 25% by 2022/23. More than 60% of these imports are aromatic varieties from Asia, primarily jasmine rice from Thailand and basmati from India and Pakistan.
Although the US cultivates some aromatic rice domestically, the quality and aroma differ from Asian varieties. The USDA expects demand for imported aromatic rice to continue rising in the coming years.
The recent tariff dispute stems from US sanctions on India over its trade and energy relations with Russia. As part of the punitive measures, a 50% tariff was applied to a range of Indian exports — including basmati rice, pharmaceuticals, and electronics. While some sectors later secured exemptions, basmati rice remained subject to the full tariff.
In contrast, Pakistani basmati rice continues to face a significantly lower US import tariff of 19%, providing a clear pricing advantage. Indian media reports suggest the higher tariff could cut India’s basmati exports to the US by 50–80%, with prices surging to nearly $1,800 per metric tonne. Pakistani basmati, by comparison, remains more competitively priced at around $1,450 per tonne.
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