Pakistan’s Rising Role in the Global Rice Market

The Indus Valley civilization has one of the earliest known records of rice cultivation in South Asia. Excavation sites, such as Lahurdewa, UP, India, date these findings to around 6500 BCE. These represent one of the oldest known instances of rice use in the world, dating back slightly after the early Yangtze River finds in China.

Rice is a staple crop that feeds over half of the world’s population, with Asia being the largest producer and consumer of rice. Among the largest global rice exporters, India (30%) and Pakistan (10%) play pivotal roles in meeting international demand. In particular, Pakistan’s rice market is known for its high-quality Basmati varieties, which have a unique place in international trade due to their distinct fragrance and long grains. However, on the international front, there is a long-standing competition between Pakistan and India, where both countries claim to be the original producers of the renowned varieties of Basmati Rice.

India’s Rice Export Ban

In July 2023, India halted exports of non-basmati white rice to curb domestic food inflation after late, heavy monsoon rains damaged crops, and retail prices rose. The order took effect on July 20, 2023, immediately removing a large chunk of supply from world trade. Within days, authorities also allowed only previously-stuck cargoes to clear ports and tightened controls on other categories, including a temporary minimum export price (MEP) of $1,200/ton on basmati and a duty on parboiled rice. The purpose was clear: protect local consumers ahead of a politically sensitive year by shielding the domestic market from weather-driven spikes.

Immediate impact on international rice prices

When the world’s largest exporter stepped back, buyers scrambled. Benchmarks for indica grades jumped, and the FAO-tracked global rice price index moved to multi-year highs in the weeks following the ban. Traders re-routed demand to Pakistan, Vietnam, and Thailand, but offers tightened across the board as importers front-loaded orders to secure supply. The price shock rippled through food-importing economies that track “rice price in Pakistan” and “basmati rice price” as signals for chawal trade in the Gulf and Africa.

Shift in global demand

India’s curbs left an estimated multi-million-ton gap in global supply, and buyers turned to alternative origins. Pakistan—already known for basmati rice and competitive IRRI grades—picked up orders across the Middle East, Africa, and Southeast Asia. The Philippines lifted imports to record levels in 2024 to calm retail prices; China increased purchases from Pakistan in 2025; and public buyers pursued government-to-government deals to manage risk. These flows brought new inquiries for Pakistani 1121 basmati rice, saila (parboiled) lines, and long-grain non-basmati, reinforcing Karachi’s place on tender radars.

By late September–October 2024, India began easing restrictions as stocks recovered—removing floor prices on non-basmati white and scrapping export tax on parboiled—moves that increased onward supply and moderated international prices into 2025. Yet, the structural lesson remained: when a dominant origin restricts rice export, buyers diversify fast, and Pakistan benefits if it can respond with policy agility and quality assurance.

How Pakistan Capitalized on the Opportunity: Policy Shifts and Export Growth

Pakistan used the window effectively. On September 28, 2024, the government withdrew the Minimum Export Price (MEP) for all rice varieties after the Rice Exporters Association of Pakistan (REAP) argued that the price floor had flipped from a protective tool into a competitive handicap once India started reopening. Pakistan’s MEP—earlier set around $1,300/ton for basmati and $550/ton for non-basmati—had helped during the tight-supply phase, but as offers softened globally, exporters needed freedom to price according to grade, season, and destination. The MEP withdrawal restored that flexibility.

Why does this matter for exporters?

Without a floor, mills and traders could once again negotiate on Super Basmati and 1121 according to milling specs (steam/saila/raw), broken percentage, and brand premiums, aligning Pakistani offers with fast-moving tender benchmarks. The change improved responsiveness on “basmati rice price in Pakistan” sheets and sharpened bids from rice exporters in Pakistan, especially rice exporters in Karachi who quote FOB Karachi and Port Qasim daily.

The policy shift landed on top of a strong harvest and diverted global demand. For the year ended June 30, 2024, Pakistan’s rice exports reached ~6.01 million metric tons (MMT) worth ~$3.93 billion—up 61.5% in volume and 83.5% in value year-on-year, according to REAP and industry data. Financial press tracked ~5.6 MMT shipped in July–May, underscoring the record run. These numbers reflect exceptional basmati and non-basmati flows, with chawal from Punjab and Sindh moving quickly through Karachi.

Challenges of export competitiveness

Competition stiffened again as India removed export floor prices and dropped taxes on parboiled rice in October 2024. Price-sensitive buyers in Africa and parts of Asia resumed splitting volumes between origins. Some concerns removing Pakistan’s MEP could encourage under-invoicing among some shippers—an issue policymakers and REAP highlighted even as they acknowledged the need for pricing freedom to keep orders. Competition from rice exports from India returned in full, and Pakistani firms responded by doubling down on quality, documentation, and brand work. To illustrate the private-sector base behind the numbers: companies such as Hassan Ali Rice Export Company (a long-standing REAP member in Karachi’s I.I. Chundrigar corridor) remain part of the core export engine, alongside branded players that keep basmati visible on retail shelves abroad.

Pakistan’s Rice Varieties: What Makes Them Stand Out in the Global Market

Pakistan’s basmati rice—notably Super Basmati, 1121 Basmati, D-98, and Super Kernel Basmati—is prized for fragrance, extra-long grain, and post-cook elongation. In export sheets, buyers look for moisture at or below 13%, tight broken percentages, and double/silky polish for premium retail. These features put Pakistani basmati on shortlists from the Gulf to Europe. Branded offerings like Falak Extreme Basmati Rice (Matco Foods) and Guard Basmati Rice sustain shelf visibility and repeat orders, reinforcing the premium position of Pakistani origin even when tenders swing on price.

IRRI-6 and PK-386 supply the backbone of price-sensitive trade into Africa and Southeast Asia, while KS-282 (Kainat) underpins a broad domestic market that values its cooking performance and familiar taste profile. In market chatter, the kainat chawal rate often signals local wholesale sentiment for non-basmati lines, even if export cargos require tighter grade specs than domestic mills.

Why do buyers choose Pakistan’s grades?

When India’s curbs shifted demand, Pakistan met a blend of retail-grade basmati and institutional non-basmati needs, giving importers a one-stop origin for both premium and staple categories. That breadth—paired with agile pricing after the MEP withdrawal—kept Chawal offers competitive and supported stable volumes through Karachi.At the farm level, the country is also moving toward alternate wetting and drying (AWD), direct seeding, and better water management. AWD reduces irrigation water use and lowers methane emissions compared with continuous flooding—important because rice is the largest consumer of irrigation water in Pakistan, while contributing a small share to GDP. The pressure on groundwater in Punjab and allocation stress in Sindh make these shifts more than a climate goal; they are production risks that can impact super kernel basmati rice quality and consistency if left unaddressed. Hybrid rice varieties in Pakistan complement these practices by lifting yields and improving stress tolerance, provided they are matched to local heat units and water.

The Basmati Rice Dispute: A Long-standing Conflict Between India and Pakistan

Both countries claim centuries of cultivation in the Himalayan foothill plains and seek protection for the word “Basmati.” The dispute resurfaces in global markets each time labeling rules, customs checks, or supermarket standards tighten. For exporters, it is less about heritage arguments and more about shipment documentation, lab testing, and origin declarations that keep consignments moving. India has pursued PGI protection for “Basmati” in the European Union, while Pakistan has challenged unilateral claims and lodged its own filings. As of October 2025, European coverage reports that a common solution has not emerged, and Brussels is navigating competing positions. The process matters because a narrow GI could limit label usage and force rebranding to generic “aromatic long-grain” terminology for some packs—affecting shelf presence built by brands like Falak and Guard.

When GI headlines turn hot, premiums for “true basmati” can widen temporarily. Import programs sometimes front-load purchases before policy cut-offs, which shows up in tender calendars and forward price negotiations. That volatility flows back to farm-gate munji/monji (paddy/dhan) demand and, eventually, to mill realizations—one reason traders track monji rate in Pakistan today alongside export offers.

Conclusion

Competition has returned as rice export from India normalizes, and some importers—like the Philippines—oscillate between record purchases and temporary restrictions to balance farmer and consumer interests. For Pakistan, the way forward is steady: protect quality on Super Basmati and 1121, keep IRRI-6/PK-386 efficient for tender markets, and invest in hybrid R&D and AWD adoption so water stress does not become a structural ceiling on output. Branding work with Falak Extreme Basmati Rice and Guard Basmati Rice should continue to hold retail shelf share, while exporters in Karachi maintain tight documentation and compliance in sensitive destinations.

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