IFTIKHAR AHMAD FAISALABAD, Sep 20 (APP):From the fields of Punjab to supermarkets and kitchens across the world, Pakistan’s rice industry is increasingly becoming a vital source of foreign exchange, but coordinated efforts are imperative to protect the sector’s competitiveness, expand international markets and ensure that farmers and exporters both benefit from the crop’s growing economic importance. Pakistan’s rice industry is confronting a new test of competitiveness as its falling export …
From paddy fields to global markets: Pakistan’s rice expands its export frontier
IFTIKHAR AHMAD
FAISALABAD, Sep 20 (APP):From the fields of Punjab to supermarkets and kitchens across the world, Pakistan’s rice industry is increasingly becoming a vital source of foreign exchange, but coordinated efforts are imperative to protect the sector’s competitiveness, expand international markets and ensure that farmers and exporters both benefit from the crop’s growing economic importance.
Pakistan’s rice industry is confronting a new test of competitiveness as its falling export volumes, aggressive international competition and the return of major suppliers to global markets threaten to erode the gains made during the country’s recent rice-export boom.
The stakeholders at a Faisalabad Chamber of Commerce and Industry (FCCI) forum have called for sustained policy support, stronger research, market diversification and closer coordination between farmers, exporters and government institutions to keep rice among Pakistan’s major sources of foreign exchange.
Talking to APP, rice dealer Akram Ali said that Rice has emerged as one of Pakistan’s most important non-textile export earners, but official data show that the sector’s recent trajectory has become less certain.
He said that according to the State Bank of Pakistan (SBP) report, rice exports reached a record $3.9 billion in FY2023-24, accounting for 12.8 percent of Pakistan’s total exports and 53.3 percent of food exports that year. The exceptional performance was helped by strong production and temporary restrictions on Indian rice exports, which opened additional space for Pakistani suppliers.
However, the opportunity has not proved easy to sustain because Pakistan’s rice exports fell to about $2.29 billion in FY 2025-26, according to data based on the Pakistan Bureau of Statistics (PBS), with shipments declining to roughly 4.29 million tonnes, compared with around 5.82 million tonnes in the preceding fiscal year.
The decline has coincided with the return of India to the international rice market and increasing price competition. Pakistan’s rice exports came under pressure as global supplies normalized and Indian competition intensified while lower international prices affected both export values and volumes, he added.
A rice exporter Anwar Hussain said that scale of the industry is evident from recent export data. According to REAP’ s export record, Pakistan exported 5.82 million tonnes of rice worth $3.35 billion during fiscal year 2024-25, compared with 6.01 million tonnes valued at $3.93 billion in 2023-24.
The latest figures show that non-basmati varieties accounted for more than five million tonnes of the 2024-25 export volume, while basmati exports stood at about 809,000 tonnes.
He said that the Pakistan Bureau of Statistics has also recorded the strong contribution of rice to the country’s external trade. Its annual analytical report for FY 2023-24 put rice exports at $3.916 billion, up 79 percent from $2.187 billion a year earlier.
Overall Pakistani exports in FY2023-24 were recorded at $30.675 billion, underscoring the significance of rice in the country’s foreign-exchange earnings.
The production side also presents substantial potential. The Pakistan Economic Survey 2025-26 reported that rice production increased by 2.8 percent during 2025-26 to 9.99 million tonnes from 9.72 million tonnes in 2024-25, despite a 3.6 percent reduction in cultivated area.
Yield improved by 6.6 percent to 2,660 kilograms per hectare. Rice contributed 0.5 percent to GDP and 2.2 percent to agricultural value addition during the year.
These figures underline the importance of improving productivity rather than relying solely on expansion of cultivated land. However, the industry still faces the challenges extending beyond farm output, he added.
Chairman Rice Exporters Association of Pakistan (REAP) Malik Faisal Jahangir described rice as a major export industry requiring collective attention from the government, exporters, farmers and trade-support institutions.
He said that rice had emerged as Pakistan’s second-largest export commodity after cotton, a position also reflected in the Pakistan Economic Survey 2025-26.
He said that government support had helped exporters withstand pressures in the international market, but maintained that the industry still faced intense competition. He stressed that Pakistan needed to remain competitive on price while simultaneously improving quality, branding, varieties, processing and access to new markets.
He said that REAP had conducted awareness programs for farmers during the past three years to encourage better production practices and increase awareness about market requirements.
He expressed optimism about the availability of exportable surplus following the expected improvement in production.
Malik Faisal Jahangir also highlighted the need for continuous development of rice varieties and expressed opposition to the introduction of genetically modified seeds, arguing that Pakistan should focus on solutions suited to its existing agricultural conditions.
President Faisalabad Chamber of Commerce & Industry (FCCI) Farooq Yousaf Sheikh placed the rice debate within the wider transformation of Faisalabad’ s industrial economy.
He said that export growth required stronger coordination among institutions including Trade Development Authority of Pakistan (TDAP), Small & Medium Enterprises Development Authority (SMEDA) and Pakistani commercial officers posted abroad.
Greater market intelligence and direct engagement with overseas buyers could help Pakistani businesses identify opportunities and overcome barriers in international markets, he added.
Former FCCI President Mian Javed Iqbal called for closer institutional coordination between the rice exporters’ body and Faisalabad Chamber.
Stronger links between the two organizations could provide a broader platform for addressing issues faced by the exporters and the business community, he added.
The potential is particularly significant because rice connects several parts of Pakistan’s economy at once including agriculture, transport, milling, packaging, logistics, banking and international trade. Its performance therefore has consequences well beyond the rice fields themselves.
Official household data also confirm rice’s continuing importance in domestic consumption. The Pakistan Bureau of Statistics’ Household Integrated Economic Survey 2024-25 recorded average monthly per-capita consumption of rice and rice flour at 0.87 kilograms nationally compared with 1.06 kilograms in 2018-19.
The message emerging from Faisalabad’ s business community is consequently centered on competitiveness rather than production alone. Pakistan already possesses a substantial rice-export base and has demonstrated its ability to generate billions of dollars in annual export earnings.
The next phase will depend on whether farmers, exporters, processors and public-sector trade institutions can collectively convert that production strength into sustained international market share and higher-value exports.
For Pakistan, the road ahead is not simply about exporting more rice, but about adding greater value to every tonne, strengthening quality, branding and market reach to give its golden grain a stronger place on global shelves.
