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ISLAMABAD, July 21 -- Pakistan's rice export revenue dropped by 14.7% in FY25, falling to $3.36 billion, according to new data released by a leading brokerage firm. This decline was driven mainly by weaker global demand and falling international rice prices, especially for non-basmati varieties.

Pakistan exported 5.8 million metric tons (MMT) of rice during the fiscal year, a slight 3.7% decrease from 6 MMT in FY24. While the drop in volume was modest, the sharp fall in export prices had a much greater impact on overall revenue. The average export price declined by 9.1%, from Rs320.8/kg to Rs291.6/kg, reflecting international pricing pressure.

Non-basmati rice, which accounts for over 85% of Pakistan's rice exports, saw the biggest hit. Its export volume fell by 4.7%, and earnings dropped by 17.4%, from $3.05 billion in FY24 to $2.52 billion in FY25. Analysts noted this was largely due to stiff competition from countries like India, Vietnam, and Thailand, where prices remained more competitive.

Even though basmati rice exports saw a 3% increase in volume to 797,000 tons, the total earnings still declined by 5.2%, falling to $832 million from $877 million a year earlier. Exporters cited lower prices and reduced demand from Middle Eastern markets as key factors behind the revenue dip.

June 2025 proved especially tough for exporters. Monthly shipments dropped 40.6% compared to May, while revenue for June stood at just $150 million - a 50% drop year-on-year. The slowdown was partly due to delayed orders, high freight costs, and uncertainty in key markets like the Gulf and Africa.

Consequently, rice's share in Pakistan's overall exports shrank to 10.5% in FY25, compared to 12.8% in FY24. Despite the downturn, the rice industry continues to be a vital source of foreign exchange and employment, especially in Punjab and Sindh. Exporters are now urging the government to support rice growers with subsidies and marketing efforts to stabilize earnings in the upcoming fiscal year.

Source : msn